There may never be a better time to be a technology company in search of funding. Over the past two years, venture capital (VC) and private equity firms have raised record amounts of capital, and they now need to put that money to work. For VCs in particular, 2016 was a record-breaking year with $41.6 billion raised across 253 funds, according to the National Venture Capital Association and research fi rm
“Overall, the availability of capital will continue to be strong in 2017,” said Alex Castelli, CohnReznick’s Technology Industry Practice Leader. “It looks like the next two years will offer real opportunity. We have so much pent up demand and positive momentum. If your company is driving revenue and profitable, or moving toward profitability, now is the time to seek growth capital or explore a liquidity event.
“There is a real concern that deals in 2017 will be more capital intensive ones when compared to venture deals that occurred over the last eight or nine years,” said David Sorin, Partner at McCarter & English and co-head of the firm’s Venture Capital & Emerging Growth Companies Practice. “As a result, there could actually be fewer companies receiving financing, but they will be raising larger amounts this year.
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