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INTELLIGENCE
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SECTOR ANALYSIS
HEDGE FUNDS
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PRINT THIS PAGE US venture-backed company valuations up on year, down on quarter08/06/2007. Source: AltAssets. 
 The median pre-money valuation for US venture capital-backed companies dropped from the six-year high it reached late last year, but remains higher than a year ago, according to the latest quarterly valuation report from Dow Jones VentureOne. It reached $18.5m in the first quarter of 2007, up from the $16.4m in Q1 2006 but down from $20m in Q4 2006.
Biopharmaceutical companies posted the largest increase in values, with the median valuation for this sector rising to $28m from $15m in Q1 2006. The healthcare industry overall, however, was down with the median valuation dropping to $22.1m in the current quarter from $27m a year ago.
Jessica Canning, director of global research at VentureOne, said, 'The increased value being placed on biopharmaceutical companies correlates with the solid liquidity activity occurring in this segment. Biopharmaceutical companies have received some successful exits in the past year via both the IPO and the acquisition route, leading investors to not only finance more companies in this sector, but also to place higher valuations on those rounds.'
The IT category saw valuations decrease slightly to $15.4m in Q1 2007 from $15.5m in the first quarter 2006. Especially the electronics and computers segment saw a big drop.
By round class, later rounds across all industries posted the largest increase, rising to $41m in the first quarter of this year from $36m in Q1 2006. This is the highest median valuation for later rounds since the second quarter of 2001.
Copyright © 2007 AltAssets
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