VC enviroment evolves to go beyond start-ups

grabow

Jeff Grabow leads Ernst & Young’s VC efforts on the West Coast.

The venture captial environment isn’t what it used to be. Guess what? That’s not a bad thing. VC has evolved to include more than just start-up companies and understanding the key trends in that evolution can be critical to getting your company funded, writes Jeff Grabow in an article for socalTECH.com. Grabow, a partner at Ernst & Young leads the firm’s VC efforts on the West Coast.

One thing hasn’t changed: A healthy exit environment is needed to for the entire ecosystem to work. We’re now seeing strong IPOs driving some VC returns, according to Grabow. The more VC returns increase, the more capital will be available for the next great generation of interesting companies with great ideas.

 

October 31st, 2013|Categories: Client News|Tags: , , , , , , |

VC Roundup: Investments down overall, up in Los Angeles, San Diego and Seattle

EYNational venture capital investments fell by 10% last year, according to figures released on January 18th by PricewaterhouseCoopers and the National Venture Capital Association. Meanwhile, with its large number of tech startups, Los Angeles has seen VC investments increase 13% from $1.1 billion in 2011 to $1.3 billion in 2012, the Los Angeles Business Journal reported.

Mark Sogomian of Ernst & Young LLP said the combination of big investments made in 2010 and 2011 and a slow market for mergers and acquisitions have lead to a decline in investments last year.

The San Diego Union Tribune reported that venture capital funding also went up in San Diego, surpassing $1 billion for the first time since 2008. A Dow Jones and Ernst & Young report showed that medical device and biotech firms alone raised $669 million last year, as opposed to $ 516 million in 2011.

With a 69% increase over the state’s total venture funding in 2011, Washington companies attracted $931.5 million in 2012.

“We had a pretty solid year, given all the uncertainties and the ups and downs in the economy,” Greg Beams of Ernst & Young told the Seattle Times. Software, IT services and biotech were cited as the strong sectors in Washington, whereas pullbacks in seed and cleantech investments were noted.

January 21st, 2013|Categories: Client News|Tags: , , , |

Venture capital investment in cleantech slowed in 2011

Venture capital investment in cleantech companies reached $4.9 billion in the United States last year, according to an analysis by Ernst & Young. That’s a drop from 2010 of 4.5 percent and zero growth in the number of overall deals.

Of the 2011 investments, energy generation led with $1.5 billion, and products and services for the renewable energy industry came in second with $1 billion invested. The report also showed that California companies garnered the most cleantech investments, accounting for $2.8 billion of the total raised; Massachusetts was second with $465 million, followed by Colorado with $363.3 million.

February 3rd, 2012|Categories: Client News|Tags: , , , |

California leads venture capital funding in Q3

Venture capitalists are pouring money into the cleantech industry even though investors are scaling back funding in other sectors, according to a report from Ernst & Young LLP as reported in the Los Angeles Times. The report found cleantech companies raised almost $1.2 billion in the third quarter, up 73 percent from $684 million compared to the same quarter last year.

“Confidence in cleantech investing continues despite the challenging investment market,” Jay Spencer, director at Ernst & Young says in the article.

This is the first quarter the sector has seen an increase in funding since the third quarter of 2008. California led the nation with 32 deals, receiving $583 million in funding.

November 4th, 2011|Categories: Client News|Tags: , , , , , , , |