Thursday, May 24, 2007

Survey: Valuations Up In Q1

A new survey comparing valuation and terms of venture funding in Silicon Valley, finds that there was a 75% increase in valuations in the first quarter of this year. The survey, conducted by local law firm Fenwick & West LLP, compared valuations and terms for 117 technology and life sciences companies in the Silicon Valley/San Francisco Bay Area. The firm said that the increase was the largest since the survey started in 2002, and was driven specifically by eleven financings mostly in the Web 2.0 and related fields. The firm also mentioned that its survey found the use of senior liquidation preference and participating liquidation preference is at the lowest level since the survey began.