A recap of the VRIC 2014, which was surprisingly busy.
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Index updates, Top 10 financings, Presentations, Partner updates and much more …
This recession is painful, but grow up -- it is not nearly as bad as I remember the 1980s being. I went over old term sheets from that period and a deal with someone for $500k was a big deal; $2.5 million was a massive amount of money.
I grew up as a recession baby. I grew up in the mining business with a big crash for my father’s company when I was about 10. The crash was impactful, and I ended up very different because of it. Some of the things I do are classic recession baby stuff, others are irrational, but all of them are impacted by that period of my life.
I would not trade that time for anything. Growing up with these issues taught me how to deal with the world -- six weeks’ delay on something is no problem, market hiccup not a problem. Need to sell stuff...then remember it’s just stuff, not people.
The Oreninc Index crashed for the week ending January 9, 2014. The reason for the fall was the lack of announced deals, which fell all the way to six, a multi-year low. Total dollars announced and average deal size both increased to $31.6m and $5.2m, respectively. With average deal size remaining strong, total dollars announced actually increasing, and a $150m dollar announcement that does not count towards the Index taking place, it is not all doom and gloom despite this week’s poor statistical performance. Even if we are still mildly cautious after a lackluster three weeks, expect a jump next week as we head into conference season.
The Oreninc Index dropped for the two holiday-shortened weeks ending January 2, 2014. Total dollars and average deal size stumbled lower than any level previously in 2013, and there were no brokered or bought deals in either week. While obviously not an encouraging sign, the fact that these two weeks included three non-trading days explains the poor performance for the most part. Expect this valley to rise at least a little as we head into 2014.
The Oreninc Index exploded for the week ending December 19, 2013. The number of deals -- 60 -- was the most announced for a single week in 2013. Total dollars announced shot up to $213m; brokered dollars announced rose to $97.6m on seven deals, a five-week high. An optimistic aspect of this week is the multiple announcements over ten million dollars, as opposed to one deal carrying the entire week. Expect a slightly slower Christmas week as we move into the New Year.
The Oreninc Index fell for the week ending December 12, 2013. The five-week moving average fell more than it has in 13 weeks. Total dollars announced fell to $70.6m, a two-week low. Brokered dollars announced rose to $37.5m on two deals and, for the first time in seven weeks, no bought deals were announced. The Index appears to be cooling down as we head closer to the holidays and the new year.
