Private Company: Financing Update, By Cooley Godward

Cooley Godward presents findings on private company financings through the second quarter of 2006 (pdf). This report provides of summary of data, reflecting the firm’s experience in venture capital financing terms and trends. Information in the report is taken from transactions in which Cooley served as counsel to either the issuing company or the investors.

The overall investment climate for privately held startups held steady in the second quarter of 2006, continuing the level of activity that was seen in the first quarter. According to the report, which covers 73 venture capital transactions that closed in each of the first and second quarters, company valuations tapered off in early-stage transactions and declined in later stage transactions. See the full report for more trends.