Late stage valuations continue to slip in first quarter

Late stage valuations continued to slip in the first quarter, according to a survey of venture capital deals from Cooley.

The law firm said its deal activity slowed during the period, keeping pace with venture market as a whole, where funding was down 11 percent from a year ago, according to the MoneyTree Report. Deal volume was down 15 percent and money invested was off 12 percent.

However, A rounds increased as a percentage of the total and investor sentiment remained strong, with up-rounds making up 88 percent of transactions, the Cooley report shows.

Among D and later rounds, the median pre-money valuation declined for the second quarter in a row. The median pre-money valuation also softened for B rounds, but rose modestly for A and C rounds.

During the quarter, the use of fully participating preferred stock decreased, but more deals included drag-along provisions, the report shows.