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Dell Appraisal Spawns a Multitude of Valuation Approaches

February 2017 | Issue 84 Introduction A Delaware Chancery appraisal case involving computer company Dell Inc. gave rise to a multitude of valuation measurements.  It is instructive to see how the court sorted through them in coming up with its final appraisal conclusion.  The case is In re Appraisal of Dell Inc., 2016 Del. Ch. LEXIS […] More...

Future Expected Investment Strategy Determines Value of FLP Interest

January 2016 | Issue 83 The estate of Helen P. Richmond held a 23.44% interest in Pearson Holding Co. (“PHC”), a family investment company.  The estate valued this holding at $3,150,000, later adjusted to $5,046,000.  The IRS valued it at $7,330,000.  This difference of opinion was aired in US Tax Court in a case called Estate […] More...

Do Attached Strings Affect the Value of a Gift?

October 2015 | Issue 82 Steinberg v. Commissioner, 145 T.C. No. 7 (Sept. 16, 2015) explores how a contingent liability accepted by a donee can impact the value of a gift for gift tax purposes. Introduction In 2007, Petitioner Jean Steinberg, age 89, entered into a net gift agreement under which she gave her four […] More...

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Silicon Valley Venture Financings – Up Rounds Rallying

August 2009 | Issue 41

A survey of second quarter 2009 Silicon Valley venture capital financings reveals that while the proportion of down round financings still exceeds up rounds (by 46% to 32%), the proportion of up rounds has inched up to 32% from 25% in the first quarter. In both the first and second quarters of 2009, down rounds accounted for 46% of financings. The corresponding down round figures for the first and second quarters of 2008 were 19% and 13%, respectively.

A down round is defined as a transaction in which the price is lower than that of the previous round of financing.

Overall Prices Down
Not surprisingly, the magnitude of price changes in second quarter 2009 venture financings also underwent a downward shift as compared to 2008. The average overall per share price change from the previous round in second quarter 2009 financings was -6%, as compared to +53% for the second quarter of 2008.

Health Care Financings Lead
Health care financings accounted for 42% of second quarter 2009 venture investments, leading information technology (37%) for the first time on record, according to Dow Jones VentureSource.

The transaction pricing survey covered 89 venture financings, and was carried out by Fenwick & West LLP, a global law firm specializing in services to high technology and life science clients. A copy of the report is available here.