Silicon Valley Venture Capital Survey – Second Quarter 2019

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Background

We analyzed the terms of 215 venture financings closed in the second quarter of 2019 by companies headquartered in Silicon Valley. The quarter showed the highest percentage of up rounds since 2004, when we first started publishing this report, and the strongest rise in median price increases since mid-2015.

Key Findings

Strong Valuation Results Improved Moderately

• Up rounds exceeded down rounds 86% to 6%, with 8% flat in Q2 2019, an increase from Q1 2019 when up rounds exceeded down rounds 81% to 11%, with 8% flat. This was the highest percentage of up rounds in a quarter since we began calculating valuation metrics in 2004.
• The Fenwick & West Venture Capital Barometer" showed an average price increase in Q2 of 77%, a moderate increase from the 75% recorded in the prior quarter.
• The median price increase of financings rose from 56% in Q1 to 58% in Q2, the highest median price increase since Q2 2015.

Series B and C Financings Valuations Were Stronger

• Series B and C financings recorded stronger valuation results compared to the prior quarter, while valuation results for Series D and E financing rounds weakened.

Software Industry Showed Strongest Valuations

• The software industry recorded the strongest valuation results in Q2, with an average price increase of 85% and a median price increase of 68%, both metrics up moderately from the prior quarter.
• The internet/digital media software industry recorded the next strongest valuation results in Q2, with an average price increase of 80% and a median price increase of 60%, though both metrics were down from the prior quarter.
• The hardware and life sciences industries both recorded considerably stronger valuation results in Q2 compared to the prior quarter, with an average price increase of 74% and 56%, respectively, and a median price increase of 48% and 43%.

Download the full report covering top-line trends for venture capital financings of Silicon Valley companies in Q2.

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