VC Valuations Up For Quarter

Silicon Valley law firm Fenwick & West is reporting today that its analysis of venture financings in the second quarter of 2006 shows an increase in up rounds versus down rounds, and a strong positive trend in venture valuations. The firm said it analyzed 90 technology companies headquartered in the San Francisco Bay Area that raised money in Q2, and found that there was a 34% average price increase for Silicon Valley companies receiving venture capital in the quarter. Up rounds (69%) exceeded down round (25%), with about 6% of deals with flat valuation. Fenwick & West is the third largest law firm in Silicon Valley.