Startup Valuations Jumped 85% on Average in First Quarter – Survey
May 19, 2014
Q1 2014 startup valuations continue to remain strong according to a new survey by Fenwick & West (a law firm based in Silicon Valley).
"Just 8% of financings were down rounds in which a company’s valuation fell, while 76% were up rounds. In the rest, the valuation stayed the same. The difference between the rate of up rounds and down rounds was the greatest since the second quarter of 2007, when the difference was 70 percentage points.
"Fenwick & West also found that the average valuation increase was 85%, up from 57% in the fourth quarter of 2013. The median increase was 52%, up from 27% in the prior quarter and the largest since the law firm began calculating median price increases in 2004."