SVB Analytics Releases Life Science Venture Capital Funding Research; Data Establishes Value Expectations for Future Rounds of Funding

Company news  |  March 27, 2008

SAN FRANCISCO - March 27, 2008 - SVB Analytics, a leading provider of valuation and corporate equity management services, released Volume 3 of its research series today, which analyzes the value drivers in the world of venture capital. The research is based on examinations of valuation data for thousands of venture-backed technology and life science companies.

This latest report provides data that investors and companies can employ to help benchmark value expectations for future rounds of venture capital financing. The research does this by taking an in-depth look at the difference in value between one round of venture capital financing and the next (step-ups), and uncovers the typical ranges for step-ups by stage in the life science sector. This data can serve as a valuable statistical reference point when determining pricing for future rounds of investment. Similar reports on the hardware and software sectors will follow in Q2 2008.

"Until now, figuring out an appropriate value for follow-on rounds has been an artful negotiation coupled with a lot of guesswork," said Jim Anderson, president of SVB Analytics. "Historically VCs have only had anecdotal step-up information about other life science companies to add to the detailed knowledge of their own portfolio. This data will give a broader perspective and infuse a little more science into the valuation process."

For a copy of SVB Analytics Research Series, Volume 3 please visit http://www.svb.com/pdfs/SVBAnalytics_Research_Vol3.pdf.

The research is authored by theoretical mathematician and SVB Analytics Research Director Cindy Moore and edited by SVB Analytics founder and President Jim Anderson. The research was funded by SVB Analytics, a member of SVB Financial Group (Nasdaq: SIVB). SVB Analytics research is conducted using a database containing 16,000 companies and more than 51,000 financings.

About SVB Analytics
SVB Analytics offers valuation and corporate equity administration services to private, venture capital-backed companies and venture capital firms. SVB Analytics' initial service offerings include fair market 409A valuations and corporate equity tracking and administrative services. SVB Analytics is a member of global financial services firm SVB Financial Group (Nasdaq: SIVB), with Silicon Valley Bank, SVB Capital, SVB Global and SVB Private Client Services, which serve the unique needs of technology, life science and private equity firms. More information on the company can be found at www.svb.com/svbanalytics.

SVB Analytics is a non-bank affiliate of Silicon Valley Bank and a member of SVB Financial Group. Products and services offered by SVB Analytics are not FDIC insured and are not deposits or other obligations of Silicon Valley Bank. Silicon Valley Bank is a member of the FDIC and the Federal Reserve and it is the California bank subsidiary of SVB Financial Group, which is also a member of the Federal Reserve.