September 14, 2009

VC = Venture Cataclysm?

The world of venture capital is changing dramatically. Thanks in part to the global recession, VCs are contending with less-than-stellar returns, contracting investment levels, and a sluggish IPO market (previously a preferred VC exit strategy). Other sources of funding are so decimated that VCs are looking to Uncle Sam for assistance. This recent WSJ article explores the fact that VCs are hoping stimulus funds will help their fledgling companies survive.

Adding to these woes, VCs may be facing a significant tax set-back wrought by legislation. As described in this blog, the tax rate on carried interest may be increased from 15% to 38%.

Keep up with how much VC is evolving by joining us for tomorrow’s webcast – “Venture Capital: Facing a Changing World” – as Jonathan Axelrad of Goodwin Procter, Steve Bochner of Wilson Sonsini and Gordy Davidson of Fenwick & West discuss how deal structures are adapting to fundamental changes in the VC world.

Change Blowing Your Mind? A Simple Chart to the Rescue

To help you navigate the numerous proposals at hand these days, Bob Hayward and others at Kirkland & Ellis have put together this 32-page chart. And it’s good to see Marty Rosenbaum of Maslon Edelman launch a new blog – – which includes this nifty (and much shorter) cheat sheet to help you navigate these regulatory changes as well. Check it out!

Latest Trends of the M&A Environment

In this podcast, Bob Filek of PricewaterhouseCoopers discusses the state of the M&A market, including:

– What major deal trends have characterized 2009?
– What have been the biggest surprises?
– Why are cross-border deals at greatest risk due to the down market?
– What will restore CEO confidence?
– How big is the distressed M&A opportunity?
– What sectors are still consolidation hot spots?

– Broc Romanek