Private Equity
1 min read · 03 March 2009
Medidata Solutions and OpenTable hope for thaw in frozen IPO market
3 min read · 01 March 2009
Twelve ways for companies to save big bucks without cutting staff
7 min read · 01 March 2009
Increasingly, venture capital-backed companies are reducing their burn rates by cutting salaries, along with perks, for their remaining employees. It's not a new trend, but it does appear to be intensifying. Savings measures – which include across-the-board pay cuts, more equity and less cash, and shorter work weeks – have become more widespread this year. In some cases, companies are reducing pay in lieu of layoffs. Others already shed jobs, and are cutting to further reduce burn. Forced time off is one popular tactic. Gerry Langeler, managing director at OVP Venture Partners, says one portfolio company is offering
2 min read · 25 February 2009
As many predicted, the much-maligned FAS 157 fair value accounting standard is shaping up as an inconsistent metric for setting VC portfolio company valuations. At least that's the take of one accountant who's deep in the process of year-end audits. Travis Drouin, partner in the audit practice of MFA-Moody, Famiglietti & Andronico, says that as firms prepare their year-end-financial statements, they’re setting widely varying estimates of fair values even for the same companies. Differences are especially pronounced for early-stage tech companies. “You have two funds side by side with the same exact portfolio, but if they both mark to fair value and they haven’t talked to each other, you could have one valued at $10 million and another valued at $40 million,” says Drouin, whose firm works with venture funds including Charles River Partners and Bessemer Venture Partners (which aren't necessarily represented by that example). The result, he predicts, will be more confusion for limited partners looking to use statements to gauge portfolio performance.
1 min read · 23 February 2009
1 min read · 09 February 2009
2 min read · 05 February 2009
When speaking with venture capitalists about what caused the great IPO market stall of the past year, a commonly cited contributing factor is the fade -out of the boutique investment banks that used to underwrite small- and mid-sized offerings. The ones most closely associated with tech IPOs prior to the dotcom bust – Robertson Stephens, Hambrecht & Quist, Montgomery Securities and Alex Brown – used to be called the “four horsemen.” Since then, however, they’ve all been folded into larger banks. And the big
1 min read · 04 February 2009
Three more venture-backed companies pull their IPOs, while a PE-backed company holds out hope for a February debut
2 min read · 01 February 2009
Rob McCord, who co-founded Novitas Capital, could be an advocate for other venture capitalists now that he is Pennsylvania’s treasurer
7 min read · 01 February 2009
