Immense Deal and Transactional Volume

New Ventures Update

Date: January 18, 2022

Starting in mid-June 2021, the New Ventures group internally tracked the data associated with transactions for all startup investments in which it represented at least one party, monitoring the number of transactions, gross dollar volume of each transaction, average gross transaction value, and data around standardized terms in the varying stages of transactions.

FY 2021 was a year of marked growth for venture capital and startup investments in the Midwest, and Thompson Hine represented either the investor or the startup in more than 17% of these transactions. The Q3 2021 Venture Monitor published by PitchBook and the National Venture Capital Association, notes that more than $7.7 billion of the venture dollars invested in the first nine months of the year were invested in Illinois and Ohio, representing over 3.2% of the total nationwide venture capital investment. Although the Bay Area continues to receive most of the funding, areas often classified as “nontraditional” saw upticks in sums of capital deployed, numbers of deals, and percentages of the venture market these regions comprise.

According to Lindsay Karas Stencel, a partner in the group and chair of the Fund Formation practice, “Tracking data like this is significant for several reasons. First, it allows us to see the magnitude of the volume of transactions processed. We knew we had a hand in most transactions in the Midwest, but tracking the data allowed us to confirm that. Second, it helped us to see the immense volume of transaction value that we have represented in our practice group. It certainly makes us proud to know that while states like Illinois and Ohio are seeing record gross transactional volume, we’ve had a hand in many of those transactions, and based on our pipeline, we don’t expect it to slow anytime soon.”

Between June and the end of 2021, the New Ventures group closed more than 120 separate transactions and represented companies in 38 states. The average gross transaction size of a round in which Thompson Hine represented either the startup or one or more investors was over $11.5 million. “This was a great year for our group, with so many transactions and a few larger ones too, registering north of $100 million per round,” says Cleveland New Ventures partner Sean Ganley.

The gross dollars represented during the six-month period exceeded $1.41 billion. “We are excited to see the continued growth of transactions and dollars invested in the Midwest and certainly happy to be a trusted and instrumental part of so many of the deals that have happened,” says partner Layla Dotson Lumpkin of the firm’s Chicago office.

FY 2022 is seemingly off to a similar start, with several transactions already in process, so the trend of increased capital flow to the Midwest appears to be continuing, and Thompson Hine’s New Ventures group will be tracking the metrics along the way to monitor shifts and changes.

Distinguished Team Focused on VC

Thompson Hine’s involvement in such a large volume of transactions, both throughout the Midwest and beyond, contributed to the firm’s recently earning a national first-tier ranking in Venture Capital Law in the U.S. News – Best Lawyers® 2022 “Best Law Firms” rankings, with Vinocur and Stencel also garnering national recognition.

The New Ventures group is acutely focused on representing startups and venture capital investors across the country. Its diverse team of seasoned attorneys is intimately familiar with all facets of the venture transaction and understands every step of the funding process, making the attorneys in the group a true asset to our clients.

The group represents high-growth companies of all sizes and stages in industries including technology, health care, life sciences, consumer products, nanomaterials, transportation, communication, medical devices, and more. Its attorneys guide clients through their growth and funding cycles, offering customized counsel on everything from day-to-day legal matters to funding to exits. For more information, visit THQuickLaunch.com.

About Thompson Hine

Thompson Hine LLP, a full-service business law firm with approximately 400 lawyers in 8 offices, was ranked number 1 in the category “Most innovative North American law firms: New working models” by The Financial Times and was 1 of 7 firms shortlisted for The American Lawyer’s inaugural Legal Services Innovation Award. Thompson Hine has distinguished itself in all areas of Service Delivery Innovation in the BTI Brand Elite, where it has been recognized as one of the top 4 firms for “Value for the Dollar” and “Commitment to Help” and among the top 5 firms “making changes to improve the client experience.” The firm’s commitment to innovation is embodied in Thompson Hine SmartPaTH™ – a smarter way to work – predictable, efficient and aligned with client goals. For more information, please visit ThompsonHine.com and ThompsonHine.com/SmartPaTH.

For more information about Thompson Hine’s New Ventures practice group visit our QuickLaunch website or contact the team members below.

Lindsay Karas Stencel
614.469.3222
Lindsay.Karas.Stencel@ThompsonHine.com

Sean Ganley
216.566.5873
Sean.Ganley@ThompsonHine.com

Layla Dotson Lumpkin
312.998.4281
Layla.Lumpkin@ThompsonHine.com

© Thompson Hine LLP. This publication is intended to inform clients about legal matters of current interest. It is not intended as legal advice. Readers should not act upon the information contained in it without professional counsel. This document may be considered attorney advertising in some jurisdictions.