Buzz Archive:
Trends in Terms of Venture Financings In the San Francisco Bay Area (Q3 2007)

by Michael J. Patrick and Barry J. Kramer of Fenwick & West LLP, 1/10/2008

The results of the Fenwick and West 3Q07 survey showed a continuation of the strong positive trend in venture valuations. The highlights of the quarter are as follows:

• Up rounds exceeded down rounds for the 15th quarter in a row (79% up vs. 14% down, with 7% flat).
• The Fenwick & West Venture Capital Barometer™ (also see the Private Equity Data Center) showed a 79% average price increase for companies receiving venture capital in 3Q07, compared to such companies' prior financing round. This was the largest increase since the Fenwick and West survey began. This increase was driven in part by 9 financings in which the purchase price of the stock sold in the financing was at least 3 times higher than prior round. Of these financings, 3 were in Web 2.0 and related fields and 3 were in Cleantech.