Venture financings are heating up to levels not seen since the recession several years ago.
That’s the conclusion of a new survey from Silicon Valley law firm Fenwick & West. According to Fenwick’s first-quarter survey of venture financings of 122 companies in Silicon Valley, 67% of the start-ups raised money at a higher valuation than their last financing. Meanwhile, only 16% of the companies raised money at a lower valuation than their previous funding round.
That spread — 67% of “up” rounds versus 16% of “down” rounds — was the biggest it’s been since the financial meltdown in 2008, said Michael Patrick, a Fenwick attorney who helped spearhead the study. It was also better than the fourth quarter of 2010, when “up” rounds exceeded “down” rounds 67% to 21%.
To read the full, original article click on this link: Fenwick & West: Silicon Valley Valuations Heat Up In 1Q - Venture Capital Dispatch - WSJ
Author:
Pui-Wing Tam
