Venture Briefing: February 22, 2017 Venture Briefing: February 22, 2017

Venture Briefing: February 22, 2017

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Acting SEC Chair Limits Agency's Enforcement Powers
Acting U.S. Securities and Exchange Commission Chairman Michael Piwowar has taken steps to limit the agency's enforcement division's powers to initiate investigations and issue subpoenas, according to people familiar with the matter. Under the new policy, the enforcement division's associate directors will no longer have authority to issue subpoenas or formally launch probes.
(Source: Reuters, 2017-02-16) Read the full article
Angel, Seed Investor Startup Deals Hit Lowest Level Since 2012
The number of startup deals being funded at the angel investor and seed stage levels nationwide has dropped six straight quarters. Angel/seed deals, according to Pitchbook, totaled 872 in the fourth quarter of 2016, the lowest level of such deals since the fourth quarter of 2012.
(Source: St. Louis Business Journal, 2017-02-06) Read the full article
Private Equity Deals in Mid-Market Transactions Waning
Increased competition for private equity deal opportunities is being felt primarily by fund managers targeting mid-market transactions. Preqin's H1 Private Equity Fund Manager Outlook finds that the majority of fund managers are seeing more competition for mid-market assets compared to a year ago.
(Source: Value Walk, 2017-02-14) Read the full article
Companies Finding Proxy Statements Becoming an Important Tool
Proxy statements continue to grow more robust and evolve as a central vehicle for telling a public company's story to its shareholders. Proxies are getting longer, providing more disclosure and greater detail, and adding graphics and other visual elements, all designed to improve transparency around boardroom decisions.
(Source: CFO.com, 2017-02-10) Read the full article
Small Businesses to Step Up Reinvesting, Hiring in 2017
Driven by their optimism, small businesses are planning some big things this year. About 41 percent, for example, are planning to invest more in their businesses.
(Source: Small Business Trends, 2017-02-08) Read the full article
More Sovereign Wealth Funds Doing Their Own Private Equity Deals
Some of the world's biggest sovereign wealth funds are increasingly striking their own private equity deals rather than relying on external fund managers, in a drive to cut costs and gain more control. With some $6.5 trillion in assets, sovereign investors already account for 19 percent of capital committed to private equity, according to data from research firm Preqin.
(Source: Reuters, 2017-02-17) Read the full article
SEC Fines Activist Investors for Disclosure Failures
Two activist investors have been charged with failing to properly disclose material information during a series of campaigns to influence or take control of microcap companies. In each of the campaigns, the SEC said in an administrative order, investor groups collectively owned more than 5% and sometimes even more than 10% of the target companies’ shares, but the required regulatory filings were “either incomplete, untimely, or altogether absent.”
(Source: CFO.com, 2017-02-15) Read the full article
Cybercrime Costs Global Economy $450B, But Many Firms Unprepared
In 2016 "cybercrime cost the global economy over $450 billion, over 2 billion personal records were stolen and in the U.S. alone over 100 million Americans had their medical records stolen," said Steve Langan, chief executive at Hiscox Insurance, told CNBC. "This is an epidemic of cybercrime, and yet 53 percent of businesses in the U.S., U.K. and Germany were just ill-prepared."
(Source: CNBC, 2017-02-07) Read the full article
Investor Stewardship Group Aims to Better Corporate Governance
A coalition of global financial firms, including asset managers and asset owners, with assets of more than $17 trillion, has launched a new initiative to formulate a set of principles governing the stewardship of investments and corporate governance. The new Investor Stewardship Group (ISG) is designed to improve governance standards and practices among US asset managers and asset owners, including corporate and state pension funds.
(Source: CIO, 2017-02-06) Read the full article
V.C. Firms Invested $3.1B in Record 279 Cybersecurity Startups
V.C. firms invested in a record number of cybersecurity startups last year, according to CB Insights data reported by Bloomberg. They poured $3.1 billion into 279 startups in 2016, compared to $3.7 billion in 272 startups the year before, and $833 million in 117 startups in 2010.
(Source: The Mercury News, 2017-02-08) Read the full article
Study Finds Looking Like a CEO Important to Getting Role
If you want to be a chief executive officer, it helps to look the part. So suggests research from a trio of Duke University professors who asked more than 2,000 study participants to look at photos of faces and rate the images based on how competent the person depicted appeared to be.
(Source: The Wall Street Journal, 2017-02-17) Read the full article
 
 
 
Headlines
Connect With Our Dealmakers at Opus Connect's New York City Chapter Event
Thomas Kesoglou Christopher Bordoni Edward Braum

Ice Miller is proud to host the New York City Chapter of Opus Connect on Thursday, March 9, 2017 from 12:00-2:00 p.m. This month's topic will be: Maximizing Human Capital to Drive Private Equity Returns. We would be delighted for you to join us. Register here.

 

 

Insurance Coverage for the Internet of Things
Nicholas Reuhs

As privacy liability and cybercrime has caught the attention of business owners and boardrooms, the insurance industry responded with gusto. Seemingly overnight, insurers realized that current policies were ill-prepared to respond to these risks and cyber-insurance grew from a niche product to a multi-billion dollar industry. Insurers and insurance brokers developed new expertise. Policyholders walked, then ran, into the cyber-insurance market. Read full story here.

 

By the Numbers

Snap plans to raise about $3 billion, offering 200 million shares for between $14 and $16. If Snap prices its shares at the high end of that range, it would give the company a market value of about $22 billion, according to analysts at Renaissance Capital, which manages IPO-focused exchange traded funds. Snap was last valued at $18 billion as a private company, according to venture capital database CB Insights.
Source: The Mercury News - Snap sets IPO valuation at up to $22 billion

 

Business
Services Group

Ice Miller has been one of the most active law firms in the private equity industry over the last decade, representing both entrepreneurs building great companies and the private equity firms and individuals that invest in them.  We have extensive experience with all types of funds (formations and operations); mezzanine and senior secured financing; leveraged buyouts, roll-ups, build-ups, and consolidations; divestitures and exits; and complex litigation on behalf of investors and privately financed companies.  In addition, over the past 10 years, Ice Miller has represented hundreds of emerging growth businesses in various industries on such matters as entity formation, capitalization, capital raising, alternative financing, intellectual property rights and protection, growth and exit strategies, corporate governance, tax matters, and many other legal issues that are critical to the growth and success of an emerging company.

Read the complete profile of the Business Group.

Anthony Aaron
Fitz Angrand
James Banister
Richard Barnhart
Samuel Beavers
Christopher Bordoni
Edward Braum
Elizabeth Brier
Adam Calisoff
Kristine Camron
Timothy Capen
Joshua Christie
Ryanne Bush Dent
Jack Dillon
Dustin DuBois
Stephen Edwards
Michael P. Farrell
Jenny Frasier
Harry Gonso
Eric Goodman
Jon Groff
Stephen Hackman
David Hight
Paul Huddle
Steven Humke

Michelle Jensen
Michael Jordan
Josef Keglewitsch
Tom Kesoglou
Dean Leffelman
Kristen Maiorino
Christopher McCleary
Chris Michael
Laurie Miller
Michael Millikan
Robert Ouellette
Thomas Pampush
Megan Ryther
Audrey Schricker
Matthew Servies
Brittney Sharp
Brent Showalter
Scott Snively
Dale Stackhouse
Emily Storm-Smith
Chase Stuart
John Thornburgh
Richard Thrapp
Kristina Tridico
Nancy Valentine

 

 
     
This publication is intended for general information purposes only and does not and is not intended to constitute legal advice.  The reader must consult with legal counsel to determine how laws or decisions discussed herein apply to the reader's specific circumstances.

 
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