Trends In Legal Terms In Venture Financings In Israel - First Half 2014

By: Shibolet & Co., Israel, in collaboration with Fenwick & West.

Background —We have analyzed the terms of venture financings for Israeli and Israeli-related technology companies that reported raising money during H1 2014. Our survey does not include financing rounds of less than US $500,000. The tables below also show, for purposes of comparison, the results of our previously released surveys.

Financing Round —The financings closed in H1 2014 and in the periods covered by our previous surveys may be broken down by types of round, or series, as follows:

Price Change —The financings closed in H12014 and in the periods covered by our previous surveys may be broken down by the directions of the change in price as compared to each company's respective previous round, as follows:

The percentages of financing transactions that were down-rounds, broken down by series, were as follows:

Liquidation Preference — Senior liquidation preferences were used in the following percentages of financings:

The percentages of financing transactions with senior liquidation preference, broken down by series, were as follows:

Multiple-Based Liquidation Preferences — The percentage of financing transactions with senior liquidation preferences that included multiple preferences was as follows:

Of the financings in which there were senior liquidation preferences based on multiples, the range of the multiples may be broken down as follows:

Participation in Liquidation — The percentage of transactions, out of the total number of financing transactions, which included participation rights in liquidation were as follows:

Out of those financing transactions the terms of which provided for participation, the percentages of those in which no cap was placed on the investors' right to participation were as follows:

Cumulative Dividends and/or Accrued Interest as Part of the...