post-IPO technology companies
with operations globally. They have
different needs at each stage of
growth, but we are able to scale with
them for their entire lifecycle. Most of
our early-stage clients have already
raised initial venture capital funding
rounds to develop products, test
market acceptance, gain revenue and
achieve market adoption. They come
to us at that point when they start to
see working capital shortfalls or need
flexibility between equity rounds.
What are the key company metrics
your team currently assesses as they
work through a deal?
We’re always looking for disruptive
ideas backed by the best VCs. We
look for market potential, competition,
revenue growth and profit margins.
A strong, collaborative management
team with a healthy history and
success record is also essential.
Additionally, we track how clients
perform relative to key milestones and
expectations of their boards, to assure
they will have access to future capital
and the ability to build a company to a
successful exit or IPO.
Have your processes shifted at all in
light of current market conditions?
No matter what kind of cycle the
market is in, we remain focused on
working with top management teams
with disruptive technologies that can
become viable, ongoing businesses
that operate for the long term. We’re
always looking for clients who have
been able to attract investment from
the best venture firms in the world.
We find that much of our deal flow
comes directly from the venture
community and from repeat
entrepreneurs we’ve funded in the
past. With a long history here in the
Valley, we’ve seen many of our clients’
companies get sold. Then, they come
back to us when they have that next
great idea.
How do you feel the rest of 2016 is
going to play out?
There tends to be a lot of uncertainty
in election years, and 2016 could
top them all! We’ve seen extreme
market turbulence in the early part
of the year and there is likely to be
continued volatility for the rest of
the year. There is also likely to be
continued skepticism in the market,
causing delays in financing. We urge
young companies to do a better job
identifying growth drivers within their
respective businesses and spending
wisely.
But even though there are real
concerns ahead, with talk of slower
growth in China and Europe, the U.S.
continues to offer investors from
all over the world a place to invest
in strong, fast-growing technology
businesses. We continue to see a lot
of liquidity in the marketplace coming
not only from the U.S. and corporate
investors, but also internationally.
About City National
With $36.4 billion in assets, City National Bank provides banking, investment and trust services through 75 offices,
including 16 full-service regional centers, in Southern California, the San Francisco Bay Area, Nevada, New York City,
Nashville and Atlanta. In addition, the company and its investment affiliates manage or administer $53.9 billion in client
investment assets.
City National is a subsidiary of Royal Bank of Canada (RBC), one of North America’s leading diversified financial services
companies. RBC serves more than 16 million personal, business, public sector and institutional clients through offices in
Canada, the United States and 38 other countries.
For more information about City National, visit the company’s website at cnb.com.
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