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Fenwick Partner Quoted in Wall Street Journal

May 26, 2009

Fenwick & West Partner Barry Kramer was quoted in a Wall Street Journal article titled "Venture Capital: It's a Downer."

Fenwick & West recently released its Silicon Valley Venture Capital Survey detailing venture financing trends for the first quarter of 2009. The results showed that companies are getting much lower valuations on their operations—a business world phenomenon known as a "down round." Consequently, many VCs investing in start-ups hold a devalued piece of the company, and the start-ups themselves aren't worth as much as they might have once been.

Barry Kramer, a Fenwick partner, says the survey's findings are "just one more piece of the puzzle" that illustrates in the toughening climate of the venture-capital business. The growth in down rounds comes on top of a difficult fundraising environment and a lackluster market for venture capital exits through initial public offerings and mergers and acquisitions.

Click here to read the full article by Pui-Wing Tam.