...so says Matt Marshal at SiliconBeat:
Looks like deals are flying at every level. Here's our story today about how buyout action is likely to continue in Silicon Valley. The pace of venture deals isn't too shabby, either. Bob Kagle, venture capitalist at Benchmark and an early backer of eBay, recently told us: "Venture industry activity has really picked up over the last few months. Decision cycles are speeding up, valuation levels are going up, and due diligence is going down." Here's why.
At Software Only, Jeff Clavier agrees but adds:
I find price competition less of an issue provided that it remains reasonable. I heard that SugarCRM's Series B was a dog fight between top funds, and therefore they got a great deal for their $5.75M. Good for them. And if the company is successful, will it matter that investors got 25 or 20% for their money ? Not really.
This is interesting to me as someone following the markets but a little frustrating from a personal perspective. I'm currently helping a Singapore-based company raise money, so seeing verdant green on the other side makes me more than a little envious. Singapore has money but only for the "right" deal. And, correct me if I'm wrong, but 99% of the Silicon Valley guys would probably not want to invest halfway around the world even with the lure of healthy IRRs.
Of course, we've only just begun looking for money, so it's not like we've been turned down by every source of capital in town. I'm just envious that Silicon Valley companies have it better! :-)
Links:
SiliconBeat: Quick, someone hire a CFO for Ellison
Software Only: Activity UP, Valuations UP, Due diligence DOWN, Competition UP = VC overdrive ?
Comments