Q2 2019 Venture Capital Up Rounds and Valuations Surge

Fenwick’s latest Silicon Valley Venture Capital survey received significant media coverage from publications including Law360, The Wall Street Journal, PE Hub and Crunchbase.

Analyzing the terms of 215 venture-capital funding rounds during the quarter, the survey found “an increase in the percentage of up rounds, share-price growth and valuations for startups with headquarters located in Silicon Valley and San Francisco,” as summarized by The Wall Street Journal.

The software industry saw the highest valuation increases during the quarter, PE Hub noted.

Fenwick corporate partner Mark Leahy, who co-chairs the firm’s startup and venture capital practice group, told Law360 the survey affirms that venture-capital backed companies in Silicon Valley are performing well.

“The question really is do we expect to see a downturn soon?” Leahy told the publication. “I think the positive signs are that the VC fundraising environment is still really strong so [venture capital firms] have a lot of dry powder for investments, the stock market is doing well and the IPO market seems to be opening up. On the other hand, there are macroeconomics risks like the U.S.-China trade war.”

Crunchbase covered the survey findings in detail.

The articles can be accessed through Crunchbase and via subscription through Law360, The Wall Street Journal and PE Hub.

To download the full report, please visit Silicon Valley Venture Capital Survey – Second Quarter 2019​.