State of Venture Quiz No. 2: Deal Terms

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.

Author: Robert Buderi

Bob is Xconomy's founder and chairman. He is one of the country's foremost journalists covering business and technology. As a noted author and magazine editor, he is a sought-after commentator on innovation and global competitiveness. Before taking his most recent position as a research fellow in MIT's Center for International Studies, Bob served as Editor in Chief of MIT's Technology Review, then a 10-times-a-year publication with a circulation of 315,000. Bob led the magazine to numerous editorial and design awards and oversaw its expansion into three foreign editions, electronic newsletters, and highly successful conferences. As BusinessWeek's technology editor, he shared in the 1992 National Magazine Award for The Quality Imperative. Bob is the author of four books about technology and innovation. Naval Innovation for the 21st Century (2013) is a post-Cold War account of the Office of Naval Research. Guanxi (2006) focuses on Microsoft's Beijing research lab as a metaphor for global competitiveness. Engines of Tomorrow (2000) describes the evolution of corporate research. The Invention That Changed the World (1996) covered a secret lab at MIT during WWII. Bob served on the Council on Competitiveness-sponsored National Innovation Initiative and is an advisor to the Draper Prize Nominating Committee. He has been a regular guest of CNBC's Strategy Session and has spoken about innovation at many venues, including the Business Council, Amazon, eBay, Google, IBM, and Microsoft.