| By Cynthia Clarfield Hess, Mark A. Leahy and Khang Tran
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Background
We analyzed the terms of 234 venture financings closed in the fourth quarter of 2018 by companies headquartered in Silicon Valley. We found that valuation results are at multiple-year highs. Our data also show a steep decline in the use of multiple liquidation preferences.
Key Findings
Valuation Results Hit Multiple-Year Highs
Valuation results in the fourth quarter of 2018 improved upon the already strong levels recorded in the prior quarters of the year and are at three-year highs.
All Financing Series on the Rise
Stronger valuation results compared to the prior quarter were recorded across each series of financing.
Software Industry Scores Strongest Valuations
The software industry recorded the strongest valuation results in Q4 2018, with an average price increase of 118% and a median price increase of 58%, both significantly higher compared to the prior quarter. |
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