Buzz Archive:
Fenwick & West: Life Science Venture Capital Valuation Survey San Francisco Bay Area 2007

by Barry Kramer and Michael Patrick of Fenwick & West, 3/27/2008

The results of the Fenwick & West fourth annual San Francisco Bay Area Life Science Venture Capital Valuation Survey show a continuation of the positive trend in the life science venture environment. The highlights of the survey are as follows:

• Up rounds outpaced down rounds 79% to 12%, with 9% flat. This was similar to 2006 when up rounds outpaced down rounds 79% to 15%, with 6% flat, and an improvement over 2005 and 2004. These results were also similar to 2007 results for non-life science companies where up rounds outpaced down rounds 77% to 14%, with 9% flat.
• BioPharma valuations increased more than medical device valuations in 2007, with software/e-commerce (which include Web 2.0 companies) and "all other companies" (which includes clean tech companies) showing the largest valuation increases, and hardware/electronics/semiconductors (which includes wireless companies) valuations increasing by approximately the same amount as life science companies.

For the most detailed data available on valuation and deal term information, read the story then search for the actual metrics at the Private Equity Data Center.