Cautious optimism: Up Rounds Increase But Down Rounds Still Prevail

Green Shoots In Company Financings?.

• Pre-money valuations up from Q1, especially at Series D level
• Up rounds 25% vs. Down/Flat rounds at 56%
• Liquidation preferences are 1x or greater
• 60% of deals done with fully participating preferreds
• 67% of deals have drag along provisions
• 71% of deals have anti-dilution provisions; 50% have full anti-dilution
• Redemption and accruing dividends are widely used outside northern California
• Pay-to-play provision are not typical at Series A, but are not uncommonly used in later stages