The investment climate for the latest consumer Internet companies, dubbed “Web 2.0” companies, remains bubbly, according to the latest survey by Silicon Valley law firm Fenwick & West.
Venture capitalists paid on average 69 percent more for their ownership of stock in companies receiving venture capital in the fourth quarter of last year, compared to the companies’ previous financing round.
This was the largest increase since the survey began. (See full results here.) The increase was driven mainly by nine financings during the quarter in which the stock price in the financing was at least three times higher than the prior round. Of these nine financings, most were “Web 2.0 and related fields,” the law firm found.
The survey analyzed the financing terms of 113 venture companies headquartered in the San Francisco Bay Area that raised money during the quarter. The survey lists other financing information, such as the prevalence of liquidation preferences, percentages of up rounds, and IPO and M&A activity.
[Disclosure: Fenwick & West is a sponsor of VentureBeat]