Blog of Intellectual Capital

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Background
We analyzed the terms of 189 venture financings closed in the third quarter of 2019 by companies headquartered in Silicon Valley. The quarter recorded the highest average price increase since mid-2015. The software and internet/digital media industries were again the industries with the two strongest valuation results in the quarter. The United States venture environment has been robust through the first three quarters of 2019, but has retreated from the peak levels recorded in 2018.

Key Findings

• Valuation Results Have Plateaued in 2019
• Series B and C Financings Valuations Were Stronger Compared to the Prior Quarter
• Software and Internet/Digital Media Industries Showed Strongest Valuations
• The pace of investments and the amount of capital invested in Q3 U.S.-wide were both down appreciably compared to the prior quarter and the year ago period.