Report: Pre-Money Valuation of VC-Backed Firms Increases

London -- According to a new report from VentureOne, the median
pre-money valuation of European venture-backed companies
increased to €4.1 million, the highest annual median since 2002
(€4.8 million). The health-care industry showed the largest
increase, growing from €5.7 million in 2004 to €7.5 million in 2005.
The median value of European IT companies also increased from
€3.2 million to €3.9 million over the same period. "As exit
opportunities improve, particularly for IT companies -- the mainstay
industry of venture capital -- investors assign more value to
portfolio companies being funded, especially those in the later
stage of financings," said VentureOne Research Director Steve
Harmston.
http://www.ventureone.com/