Background
We analyzed the terms of 166 venture financings closed in the second quarter of 2015 by companies headquartered in Silicon Valley.
Overview of Fenwick & West Results
Valuation results continued to be strong in 2Q15.
- Up rounds exceeded down rounds 83% to 8%, with 9% flat. This was essentially unchanged from 1Q15 when up rounds exceeded down rounds 83% to 9%, with 8% flat.
- The 75 point difference between up and down rounds was the largest since we began calculating up/down rounds in 1Q02. The last two quarters have had the highest percentages of up rounds since 1Qo2 as well.
- The Fenwick & West Venture Capital Barometer" showed an average price increase in 2Q15 of 107%, an increase over the 100% recorded in 1Q15.
- Series B financings have generally had higher Barometer results than other series over the course of our survey, and in 2Q15 Series B exceeded the next closest series by 81 percentage points, the largest amount in two years.
- The median price increase of financings in 2Q15 was 74%, an increase from the 62% registered in 1Q15.
- The software industry again had a very strong performance in 2Q15 with 50% of all deals and generally the second highest valuation results. The internet/digital media industry, with the highest valuation results, and the life science industry, with the second highest percentage of deals and also strong valuation results, also had very strong quarters. The hardware industry had very solid results also in the quarter, but lagged the other industries.
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