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SVB Analytics Releases Venture Capital Funding Research; Data Reveals Value Expectations for Hardware and Software Companies' Future Rounds of Funding
Company news | June 17, 2008
SAN FRANCISCO and BOSTON - June 17, 2008 - SVB Analytics, a leading provider of valuation services and corporate equity management software, announced today, its release of two new volumes of its research series, 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 research infuses more science into what's behind the valuation process - and that's helpful for both companies and VCs," said Jim Anderson, president of SVB Analytics.
Like the last volume, which examined the life science sector, the new reports take an in-depth look at the changes in enterprise value between rounds of funding (i.e., the step-ups) in the software and hardware sectors. The reports provide data that investors and companies can employ to help benchmark value expectations for future rounds of venture capital financing by uncovering the typical ranges for step-ups by stage in these sectors. This data can serve as a valuable statistical reference point when determining pricing for future rounds of investment.
Today's findings reveal that in the software sector, the size of the previous round of funding is the best predictor of how much a company is likely to see when raising its next round. In the hardware sector, industry sub-sector is an important factor for earlier-stage companies' step-up values while round amount is the important factor for later-stage companies, regardless of the sub-sector.
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 is the leading provider of valuation services, corporate equity administration software and FAS123R software for private technology and life-sciences companies. SVB Analytics' offerings include fair market valuations for compliance with IRC409A and FAS123R, capitalization tracking and options accounting. SVB Analytics is a member of global financial services firm SVB Financial Group, with Silicon Valley Bank, SVB Capital, SVB Global and SVB Private Client Services, which serve the unique needs of technology, life sciences and private equity firms. More information on the company can be found at www.svb.com/svbanalytics.
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"This research infuses more science into what's behind the valuation process - and that's helpful for both companies and VCs," said Jim Anderson, president of SVB Analytics.
Like the last volume, which examined the life science sector, the new reports take an in-depth look at the changes in enterprise value between rounds of funding (i.e., the step-ups) in the software and hardware sectors. The reports provide data that investors and companies can employ to help benchmark value expectations for future rounds of venture capital financing by uncovering the typical ranges for step-ups by stage in these sectors. This data can serve as a valuable statistical reference point when determining pricing for future rounds of investment.
Today's findings reveal that in the software sector, the size of the previous round of funding is the best predictor of how much a company is likely to see when raising its next round. In the hardware sector, industry sub-sector is an important factor for earlier-stage companies' step-up values while round amount is the important factor for later-stage companies, regardless of the sub-sector.
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 is the leading provider of valuation services, corporate equity administration software and FAS123R software for private technology and life-sciences companies. SVB Analytics' offerings include fair market valuations for compliance with IRC409A and FAS123R, capitalization tracking and options accounting. SVB Analytics is a member of global financial services firm SVB Financial Group, with Silicon Valley Bank, SVB Capital, SVB Global and SVB Private Client Services, which serve the unique needs of technology, life sciences and private equity firms. More information on the company can be found at www.svb.com/svbanalytics.
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