It's always an interesting week in venture capital. We find the best stories, blog posts and other information inside the VC ecosystem here in the US and in happening places around the world. Onward dear reader…
BIG CHANGES IN PATENTS
The America Invents Act (AIA), which was enacted on September 16, 2011, now has proposed rules and examination guidelines.
Morrison Foerster: USPTO First Inventor to File Rules (PDF)
MoFo provides an excellent overview of how the patent system will change from a "first to invent" system to that of a “first to file”.
A TALE OF TWO MARKETS
Repoint Ventures VC Tom Tunguz has an insightful post on recent trends in venture capital over the past 12 years.
TechCrunch: A Few Good Rounds
Tunguz makes the point that relatively few companies have raised extremely large amounts of money at high valuations (the first “market”), which has masked a second market that has actually contracted.
RETAINING KEY EMPLOYEES
Startup attorney Alexander Davie has a fifth installment on an excellent series about equity compensation.
Strictly Business: Part 5: Accounting Implications
The post deals with basic distinctions between stock options and restricted stock, phantom stock and stock appreciation rights.
SEED ROUND PRICE SIGNALING
VC David Beisel takes on the challenge of seed stage price signaling, an inherently difficult task.
Genuine VC: Signaling Price Expectations
It's a valuable read, especially his take on how different types of investors have different price sensitivities at the very early stage.
EUROPEAN VENTURE INVESTMENT UP
Dow Jones has its second quarter, 2012 report on European venture capital investment activity.
Dow Jones VentureSource: Q2 2012 European Venture Capital
The report highlighted that the amount of investment increased by 14%, but the number of deals declined 20% versus the same period in 2011.
CORPORATE VENTURE CAPITAL
Flush with cash, corporate venture capital groups were very active during the second quarter of 2012.
NVCA: Corporate VC Remained Strong
According to a report jointly issued by the National Venture Capital Association and Thomson Reuters, corporate activity through 6/30/2012 was higher by 7.8%, with participation in 280 rounds and investments totaling just over $1 billion.
VC PERFORMANCE MOVING UP
Venture capital returns seem to be improving, according to data from Cambridge Associates and the NVCA.
PE Hub: Gradual VC Upswing
For the first quarter of 2012, industry returns reached 4.7%, slightly down from the same quarter in 2011. The report goes on to highlight double-digit performance returns in the one-, three-, 15-and 20-year time horizons.
THEY'RE JUST NOT THAT INTO YOU
Have you been pitching VCs and not getting the kind of response you want?
CNNMoney: 5 Signs a VC Is Not That Interested
Experienced startup founder Elad Gil has a short but sweet piece on five telltale signs that a VC firm is ambiguous about your company's opportunity.
HOMEGROWN VC IN MICHIGAN
The Michigan Economic Development Corporation is continuing to invest in the venture capital industry in the state.
The MEDC: Pure Michigan
The organization announced that its Michigan Strategic Fund is accepting applications to invest up to $9 million in first and second generation venture capital funds in Michigan.
CHINA VENTURE CAPITAL
Venture capital investment in Chinese companies dropped precipitously in the first half of the year.
Dow Jones: VC in China Drops
Investment slid 43% to $1.9 billion under the weight of slowing regional economic growth and reduced initial public offering interest.