Valuing Venture Capital Investments
For the first time in five years, median valuations of companies receiving venture capital increased last year. Companies already shipping products showed the largest gains; in 2004, their median valuation was one-third higher than in 2003. Overall, though, valuations were still only about half of 2000’s high. Health-care companies have suffered the least, their median valuation declining less than a fifth since 2000. But information technology companies have plummeted.