Analytics

See the replay of a Web seminar by SVB Analytics - eProsper, addressing 123R (FASB ASC 718) and the issues of the expensing of stock-based compensatory securities.

SVB Analytics provides a summary of its latest research into venture-backed company exits by sector, including exit multiples, capital-to-exit, time-to-exit and value-at-exit.

Lower valuations have many companies wondering what to do about everything from options grants to investor rounds.

Preview the research findings into company valuations that SVB Analytics plans to detail in upcoming reports. We introduce our new data set of 1500 409A opinions completed from 2006 to 2008.

Private companies must now meet a substantially higher standard in the valuation of their shares for both tax and financial reporting purposes, with the passage of IRS Section 409A and SFAS 123R.

Although each industry sector has unique dynamics, our analysis shows that the long term trend line of time-to-exit is steadily increasing.

More than three years have passed since the Financial Accounting Standards Board (FASB) published Statement 123R (the "Statement") in December 2004, which requires companies to expense share-based payments, including employee stock options.

The hardware sector encompasses electronics (while the bulk of our electronics sample comes from consumer electronics, it also includes storage and storage area network (SANS) companies), semiconductor, data communications, telecom and wireless companies.

The software companies in our data sample primarily offer tools and applications, while a minority of the companies offers communication services and commerce/content/media.

The life science data sample is primarily composed of companies in the therapeutics and medical device sectors.