Fenwick and West Silicon Valley Venture Capital Survey (Q1 2013)
This survey analyzed the terms of venture financings for 118 companies headquartered in Silicon Valley that reported raising money in the first quarter of 2013
Although a healthy 68% of Silicon Valley financings in 1Q13 were up rounds, both the average and median percentage change in share price declined noticeably from 4Q12. In short, the up rounds were “up” by less. For example, 43% of up rounds in 4Q12 were up by more than 100%, while only 23% of up rounds in 1Q13 were up by more than 100%.
Here are the more detailed results:
– Up rounds exceeded down rounds in 1Q13, 68% to 11%, with 21% of rounds flat. This was a slight decline from 4Q12 when up rounds outpaced down rounds 71% to 8%, with 21% of rounds flat
– The Fenwick & West Venture Capital Barometer™ showed an average price increase of 57% in 1Q13, a healthy result but a decline from the 85% recorded in 4Q12
– The median price increase of financings in 1Q13 was 14%, a significant decline from the 41% recorded in 4Q12
In general the internet/digital media and software industries lead, with hardware and cleantech following, and life science trailing significantly.
SOURCE: Fenwick & West LLP