Companies are staying private longer, raising significant rounds of late-stage private funding pre-IPO, and going public at substantially larger pre-money valuations
than ever before.
Despite the active IPO market (a total of 79 when biopharmaceutical companies are factored into the equation), both pre-money valuations
and dollars raised at public offerings declined in 2014, the SVB report said.
The median pre-money valuations
in biopharma fell nearly 40 percent from 2012, to $129 million, and dollars raised remained flat.
using IPOs to exit are typically more advanced than those exiting through M&A, and they usually experience higher pre-money valuations
From the information we have concerning investment transactions within the last six months in the social networking space, we have found a range of 5 to 7 for EBITDA multiples used to determine pre-money valuations
Companies that have needed to raise new capital during the year have been obliged to accept significantly lower pre-money valuations
Contrary to ongoing concerns throughout the industry, Levensohn said his analysis of VentureSource data on median pre-money valuations
suggests no consistent inflationary trend in the pricing of early financing (first and second) round valuations.
The report finds median pre-money valuations
continuing to climb for the third consecutive quarter reaching $3 million in Q2 2014.
Within the health-care segment, later-stage medical device companies had the highest median pre-money valuations
for the quarter, at $39 million, compared to $26 million overall for biopharmaceutical companies.
The report finds median round sizes increased to $980K per deal, and pre-money valuations
rose to $2.
com, have appreciated significantly as they have achieved pre-money valuations
in recent financings of $120-million and $50-million, respectively.
Valuations The most consistent finding in the report is median pre-money valuations
in early-stage companies, which remain steady at $2.