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Venture-Backed Companies Enjoyed High Valuations, Favorable Deal Terms in 2014

February 26, 2015

Fenwick & West and the firm's quarterly venture capital survey was prominently referenced in a Wall Street Journal article about venture capital financing in 2014. 

The Wall Street Journal reported that Fenwick’s VC Survey found that the average valuation increase for VC-backed companies rose to 115 percent in the fourth quarter of 2014, the highest amount since the firm began calculating the statistic. Even more bullish were investors in Series B rounds, which showed an average price increase of 192 percent.

The Wall Street Journal also noted that Fenwick’s survey saw erratic quarterly price increases last year, with the median price increase peaking at 75 percent in the second quarter, then falling to 43 percent in the third quarter and bouncing back up to 61 percent in the fourth quarter.

The survey also found that investor favorable terms such as senior liquidation preference were used relatively infrequently, the article noted.​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​