VentureBeat - Latest Comments in Valuations of venture-backed companies hit five-year high

Re: Valuations of venture-backed companies hit five-year high

Rob-Bridgescale — Mon, 05 Jun 2006 12:40:21 -0000

What seems to be one of the key drivers of rising late-stage valuations is simply company maturity or, specifically, the age of the company. Evaluation of the Dow Jones VentureOne data shows that the median age of these later stage companies has also increased from 4.35 years in the year 2002 to 5.76 years in 2005. This 32 percent increase in the median age of the companies is largely driven by the lengthening time to liquidity for private venture-backed companies.

Re: Valuations of venture-backed companies hit five-year high

Pran Kurup — Mon, 05 Jun 2006 10:43:11 -0000

Any idea on what Web 2.0 company pre-money valuations are like? Your download document does not track that.

Re: Valuations of venture-backed companies hit five-year high

Matt Marshall — Mon, 05 Jun 2006 01:38:53 -0000

Apologies for any confusion. I'd been waiting for DJ to give me the thumbs up on releasing the press release. It is now there in the post, in an update.

Re: Valuations of venture-backed companies hit five-year high

DV Henkel-Wallace — Sun, 04 Jun 2006 20:44:27 -0000

Your explanation is not clear, so it's hard to see if it supports your conclusion or not. I suspect this valuation is due to companies taking an additional round rather than going public right now. This would be consistent with this $18.4MM being the _median_ (not mean) value. If so, then I agree it's not a sign of a bubble. But on the other hand it doesn't imply that A or B stage valuations are any higher.