Venture Briefing: May 17, 2017 Venture Briefing: May 17, 2017

Venture Briefing: May 17, 2017

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V.C. Assets Under Management Doubled Since Financial Crisis
The global venture capital industry is expanding at an accelerating pace, with total assets under management reaching $524 billion as of June 2016, the latest data available. The industry is on track to see the eighth consecutive year of growth, with the assets held by venture capital funds now nearly double the total recorded in 2008 ($271 billion).
(Source: Value Walk, 2017-05-11) Read the full article
Strong IPO Market Likely to Positively Impact Startup Funding
In 2016, there were just 14 tech IPOs, compared with 28 in 2015 and 62 in 2014. CB Insights expects a larger number of successful IPOs in 2017 than in 2016 and is tracking 369 privately funded US companies considering an IPO.
(Source: ZDNet, 2017-05-11) Read the full article
With Piles of Cash, Buyout Firms Seek Deals Before Tax Changes
Private equity has been largely outbid or left out completely of dealmaking so far this year, despite the fact that it is sitting on a record amount of cash. So now buyout firms are raising even more money to try and snag some big deals before a possible change in tax law makes their corporate competitors even more flush with strategic M&A funds.
(Source: CNBC, 2017-05-11) Read the full article
Survey Finds CEOs Bullish on Merger and Acquisition Activity
CEOs are feeling confident about doing a deal in the first year of Donald J. Trump's presidency. According to a recent survey from EY called the "Global Capital Confidence Barometer," 79 percent of U.S. executives plan to pursue an M&A deal in the next 12 months, surpassing the survey's long-term average of 47 percent since its inception eight years ago.
(Source: Yahoo Finance, 2017-05-02) Read the full article
CFPB to Expand Fair-Lending Protections to Small Businesses
The Consumer Financial Protection Bureau announced recently that it has expanded its mission from protecting consumers to protecting small businesses, especially those owned by women and minorities. The bureau explained that it is fulfilling Section 1071 of the Dodd-Frank Act, which amended the Equal Credit Opportunity Act (ECOA) to require financial institutions to collect information from credit applications about the race and sex of small-business owners.
(Source: Banking Exchange, 2017-05-12) Read the full article
Multinational Companies Lobby for Overseas Tax Breaks
Major U.S. multinationals are pushing the Trump administration to deepen the tax break it has already tentatively proposed on $2.6 trillion in corporate profits being held offshore, a key piece in Washington's intricate tax reform puzzle. As President Donald Trump tries to deliver on his campaign promise to overhaul the tax code, lobbyists for technology, drug and other manufacturers are working with officials behind closed doors, six lobbyists working with various industries told Reuters.
(Source: Reuters, 2017-05-15) Read the full article
New Rule Changes Accounting of Companies' Equity Investments
There is a little-noticed change coming down the pike that will have a major impact on business. It’s a new accounting rule promulgated by the Financial Accounting Standards Board, which will change the way companies, both big and small, account for their equity investments in other companies, specifically for those stakes smaller than 20 percent.
(Source: The New York Times, 2017-05-12) Read the full article
AICPA Unveils Final Piece of Cybersecurity Guidelines
Accountants will soon be able to provide an independent assessment of a company's cybersecurity risk management. In mid-May, the American Institute of CPAs will roll out the final piece of a guide that helps accountants provide an independent opinion of how successfully a company manages its cybersecurity risks.
(Source: The Wall Street Journal, 2017-05-03) Read the full article
Over Half of Family Offices Dedicate Workers to P.E. Investments
More than half of family offices now have at least two employees dedicated to sourcing and vetting private equity investments, according to a new survey from Family Office Exchange, and four out of five have at least one. The data was published in the organization's 2017 FOX Global Investment Survey, which polled 118 family offices on a number of issues including asset allocation, performance, passive versus active investing in long-only equity, investment trends, current economic outlook, and financial challenges.
(Source: Finalternatives, 2017-05-08) Read the full article
Young Venture Capitalists Changing Startup Investing Landscape
In a trend that turns the established venture capital dynamic on its head, the investors backing the Bay Area's early-stage tech startups increasingly are 20-somethings with little more than college credits, internships or a few years of work experience under their belts -- a far cry from the seasoned tech veterans who traditionally have offered sage advice and guidance to the startups in their portfolios. While the trend is largely anecdotal -- and many 20-somethings still would rather follow in the footsteps of entrepreneurs like Mark Zuckerberg or Larry Page -- the chance to cash in as an investor in the next Facebook or Google is increasingly alluring.
(Source: The Mercury News, 2017-05-15) Read the full article
FDA's Push for Big Data
James Banister

Sabermetrics is the empirical analysis of baseball, especially baseball statistics that measure in-game activity. Brad Pitt, playing Billy Beane in the 2011 blockbuster Moneyball, confirmed a proper breakdown of statistics creates a significant advantage for a baseball general manager. Read full article online.


By The Numbers

Ag startups received $200 million through 29 deals, the most of any quarter since researcher CB Insights began tracking the data in 2012.
Source: Bloomberg: In Trump’s America, Heartland Hooks Up With Silicon Valley


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

Michael Jordan
Josef Keglewitsch
Tom Kesoglou
Dean Leffelman
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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