Pre-money valuations by series | Source: PitchBook
This chart traces the median venture capital pre-money valuation for several stock series (Seed, Series A, B, C and D+) over the last several years. Valuation increases can be seen across the board, but seed rounds and Series D rounds saw the most pronounced growth in valuations. For example, valuations in Series D and later rounds ballooned from about $50 million in 2009 to $132 million in 3Q 2013.
Series B Up Rounds
In this report, PitchBook breaks out the percentage of rounds for each series that were up, down or flat. The data show that so far in 2013, Series B rounds had the highest percentage of up rounds, at 71%. This is a big change from 2009, when, during the depths of the financial crisis, only 50% of Series B financings were up rounds.
Valuation from Last Round to Exit
Increase in valuation from last round to exit | Source: PitchBook
The increase in value from a company’s last venture capital round to its exit serves, on aggregate, as one of the best barometers of venture capital performance. It also shows whether VC-backed companies are attractive investments in the economic times they’re operating in, particularly if a big payout is expected at exit. This chart shows both the median increase in valuation from the last VC round to exit, as well as what this increase looked like for the top 25% of VC exits.
Valuation by Industry
The VC Valuations & Trends Report also breaks down the increase in valuation over the last several years for a number of different industries. Since valuations are usually driven by the stage and size of a given company, the report breaks out these industry charts by series as well. Of particular interest may be the media industry, which has seen pretty dramatic valuation increases across all series of stock for the last several years.
Liquidation participation by year | Source: PitchBook
Our last chart shows the dramatic decrease in the number of rounds that include uncapped and capped liquidation participation since 2008. The report also breaks this out by up and down rounds in order to show how that is affecting the terms that VCs and companies are negotiating.