Pre-money valuations hold at high levels in Q1

Pre-money valuations held at high levels in the first quarter, with Series A deals reaching a level not seen in 14 years, according to a study from Cooley.

The median pre-money valuation rose for all stages except Series C, the law firm reported from an analysis of 205 deals it handled during the period. Up rounds also kept pace. Eighty-three percent of the deals saw their share price improved while only 10 percent were down rounds, similar to the fourth quarter.

The biggest increase in pre-money valuations came in Series D rounds and beyond, where the median rose 33.5 percent from the fourth quarter to $267 million, the law firm’s data show. The median seed round pre-money valuation climbed 14 percent to $8 million.

In the A round, the median pre-money advanced 9.5 percent to $23 million.

Higher early stage valuations also were evident in the MoneyTree Report‘s first quarter report. The average early stage round rose to $13.3 million in the first quarter, compared with $9.9 million in the fourth quarter and $8.5 million for all of 2007, according to the report.

Action Item: To access the Cooley report, click here:

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