East Coast VCs Getting Better Deals?


Venture capital deals in San Francisco Bay area are more entrepreneur-friendly than the deals going down on the East Coast, at least when it comes to cumulative dividends and easier redemption terms, reports VC Experts.

From their comparison of Q3 deals on both coasts.

  • In the Bay Area, VCs land cumulative dividends in only 4% of deals. On the East Coast, the number is 55%.
  • East Coast investors also secured redemption at their’s option 70% of the time, compared with only 23% in Bay Area deals.

The comparison comes after only one quarter, so it’s hardly complete. But we’re not surprised to Silicon Valley’s engineers-turned-entrepreneuers get themselves better deals. That was the whole point of Michael Lewis’s book-long profile of Netscape, Healtheon and Silicon Graphics founder Jim Clark, the New New Thing.

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Cash-Strapped VCs Dumping Stakes At 10-60 Cents On Dollar