Posts filed under 'Financial Advisory'
Preferred Equity Basics Part 2
There Is A Reason Why Preferred Equity is Called Preferred:
Preferred Equity Has a Big Impact on the Value of Common Stock
The terms and conditions on preferred equity frequently issued to venture capitalists may seem arcane, but the impact on the value of common stock (and stock options) is significant! These impacts are important for tax and accounting compliance. But more importantly, they determine the amount of money shareholders will receive when the long hoped-for “exit” is finally realized. (more…)
Add comment February 4, 2010
Preferred Equity Basics Part 1
There Is A Reason Why Preferred Equity is Called Preferred:
Preferred Equity Has a Big Impact on the Value of Common Stock
The terms and conditions on preferred equity frequently issued to venture capitalists may seem arcane, but the impact on the value of common stock (and stock options) is significant! These impacts are important for 409A compliance. But more importantly, they determine the amount of money employees may receive when the long hoped-for “exit” is finally realized.
This is the first in a series of posts meant to help explain many of the typical forms of preferred equity we see. We will provide guidance on the impact to the holders of common shares. (more…)
Add comment February 1, 2010
Where have all the public companies gone?
It’s no big news that there weren’t a lot of IPOs in 2009, and hardly any in 2008. In general, IPOs were few and far between in the years after the dot-com bust. Most pundits make the passage of Sarbanes-Oxley in 2002 responsible for this dearth of new offerings. (more…)
Add comment January 17, 2010
How Long Does It Take to Sell a Company?
Depends. It can take a couple of weeks for a hot technology company, or many months, if the buyers aren’t lining up around the block, which is a rare occurrence these days. (more…)
Add comment December 23, 2009
Are VCs Bad at Math?
Pepperdine University recently published its first Private Capital Markets Report, and it is chock full of useful information for entrepreneurs and investors alike. (more…)
Add comment November 12, 2009
Bigger isn’t better Part 2: The right size for the Venture Capital Industry
In my last post, I discussed size considerations of individual venture capital firms.
If VC firms ought to be smaller, what does that say about the VC industry as a whole? (more…)
Add comment October 12, 2009
Bigger isn’t better Part 1: Size considerations for Venture Capital Funds
What is the right size for venture funds?
Veteran investor Alan Patrikof is musing in a recent piece in The New York Times about the “good old times” when venture funds were $100 million at most.
So why should VC-Firms be smaller? (more…)
3 comments September 29, 2009
New Education Series for Technology Community
In response to today’s current market conditions, The Brenner Group is putting our experience to work and has developed and launched “The Brenner Group Education Series” – practical, educational seminars for clients, partners and entrepreneurs to address issues that are important to the technology community. (more…)
July 15, 2009
Light at the End of the Tunnel?
Most indicators for the venture capital industry are down significantly. As indicated by the latest Moneytree Report, funding is down (Q1/09 investments are at the lowest level since 1997), valuations are down (87% of Q1/09 venture rounds are flat or down, as reported by Cooley Godward Kronish), and the industry is in a slump and is trying to reinvent itself (as remarked earlier).
Curiously, the Silicon Valley Venture Capitalist Confidence Index for the Q1/09 actually rose to 3.03 from 2.77 (with 5 indicating high confidence and 1 indicating low confidence). This is the first substantial uptick in eight quarters. (more…)
July 7, 2009
It’s a Buyers’ Market for Assets and IP
Bankruptcy-related mergers and acquisitions have hit their highest level globally since August 2004. (more…)
June 8, 2009
