Out of all the tech sectors in the Bay Area, relatively more web companies that raised funding last quarter also saw their valuations rise, according to data analyzed by technology-focused law firm Fenwick & West. Cleantech companies that received backing came in second in terms of obtaining higher valuations, while life science and enterprise startups averaged smaller valuation increases. Overall, of 108 companies surveyed in the region, 68 percent of the companies that raised funds saw their valuations go up, with 19 percent staying flat and 13 percent falling.
Hopefully, this data is a sign of these web companies’ ability to make money as they mature — not just investors’ increasing desire to get a piece of them. Venture firms themselves have been busy raising more money lately, and other reports show more money going to later-stage companies, than earlier-stage ones.
Meanwhile, the initial public offering market is near-dead, as many IPO-worthy companies wait for better general market conditions (and maybe less regulation?) before trading in their private status. The total amount invested dropped nationally last quarter. So did returns on past investments, although those returns still beat the public stock markets.
[Image via etech-group.]
