Late-Stage Private Placements

As we have reported in other blog posts, many successful privately held companies are able to raise funds from institutional investors at attractive valuations and defer their IPOs. While the exuberance regarding valuations may have tempered some in 2016, approximately $41 billion was raised in late stage private placements. As in prior years, tech companies raised the majority of the proceeds. There were fewer deals completed in 2016 compared to 2015, as noted in our infographic, which you can access here.  It is difficult to predict whether this year will mark a turning point in which we see some unicorns undertake IPOs.

Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.