Deal Terms Still Look Shaky For Start-Ups, But Improving
Start-up companies continue to give into harsher funding deal terms set by venture capitalists, but there are signs the mood is brightening.
Two Silicon Valley law firms, Cooley Godward Kronish and Fenwick & West, separately issued reports this week that analyze the terms of venture financings in the second quarter. While the reports offer different results, they come to similar conclusions: Market terms showed signs of improvement in the second quarter. Or as Cooley cautiously states on the top of its report, there are “early signs of potential improvement.” At least the market isn’t spinning out of control as once feared.
