Silicon Valley Venture Capital Survey – First Quarter 2021

Background

Our survey analyzed the terms of 259 venture financings closed in the first quarter of 2021 by
companies headquartered in Silicon Valley.

Key Findings

Valuation results continued their momentum, reaching historical highs

• Up rounds exceeded down rounds 85% to 10%, with 5% flat in Q1 2021, a decrease from the prior quarter when up rounds exceeded down rounds 86% to 5%, with 9% flat.
• The Fenwick Venture Capital Barometer™ showed an average price increase in Q1 2021 of 145%, an increase from 125% in Q4 2020 and the highest average price increase recorded in a quarter since we began calculating valuation metrics in 2004.
• The median price increase of financings rose to 90% in Q1 2021, the highest median price increase recorded in a quarter in the history of this survey, surpassing the previous high of 3% recorded in the prior quarter.

Series E+ financings recorded greatest gains in valuation results

• Series E+ financings recording the greatest gains in average and median price increases compared to the prior quarter. In contrast, valuation results for Series C financings declined considerably compared to the previous quarter.

Valuations strengthened across all industries

• Valuation results strengthened across all industries in Q1 2021 compared to Q4 2020. The internet/digital media and software industries again recorded the strongest valuation results in the quarter.
• Valuation results for the hardware industry rebounded to pre-pandemic levels, after having lagged behind other industries during the peak of the pandemic.

Use of senior liquidation preferences and participation rights remained low

• The use of senior liquidation preferences and participation rights remained low in Q1 2021, but
  ticked up marginally from the historic lows of the previous quarter.

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