X Factor, VC, startups

State of Venture Quiz No. 2: Deal Terms

Robert Buderi 8/18/09

A couple weeks ago, I colluded with Michael Greeley, general partner at Flybridge Capital Partners and chairman of the New England Venture Capital Association, to round up some statistics about venture capital here in the Boston area. I then tested readers’ knowledge of the trends with the inaugural State of New England Venture Quiz.

The fistful of questions covered such big-picture issues as the percentage of all venture funds that are managed in New England, the percentage of U.S. venture dollars New England companies attract, and the number of venture-backed companies in the region,

We got a great response, so last week, I tapped Greeley again to come up with fodder for a second quiz. It happened he had just heard a talk by John Hession, a partner at Cooley Godward Kronish in Boston, who had shared some fascinating stats on deal terms from Cooley’s survey of 75 of its investor and startup clients, as well as actual term sheets. So I pinged Hession on Friday, and he gladly sent over his PowerPoint, as well as the latest Cooley survey results covering the second quarter of 2009. This quiz is derived from the data in that survey (note: the last question, about carve-outs, was based on data for the year to date before the Q2 study was complete).

While our inaugural quiz was limited to New England trends, Hession says the Cooley data comes from a nationwide survey. (Greeley, by the way, says the data certainly reflects New England trends.) I will run the answers tomorrow, with a little bit of commentary and context. As an entrepreneur myself, I can assure you the answers are illuminating.

Question No. 1

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Question No. 2

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Question No. 3

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Question No. 4

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Question No. 5

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Question No. 6

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Don’t forget—the answers will come tomorrow.

Bob is Xconomy's founder and editor in chief. You can e-mail him at bbuderi@xconomy.com, call him at 617.500.5926, or follow him on Twitter at http://twitter.com/bbuderi.