The Pricing of Successful Venture Capital-Backed High Technology and Life Sciences Companies

Abstract

This HVA/VentureOne study examines 1,247 private venture capital financing of 479 electronic, software, communications, biotechnology, and medical device companies that went public between January 1993 and June 1997. The author identifies the pricing and explains the changes in corporate valuations between various rounds of financing and the initial public offering. For the purpose of analyzing the factors and measuring the implications of these market valuations, the companies are segmented according to stage of development, type of financing round, industry, and year of IPO. This study interprets the data by means of a transactional analysis and a statistical analysis.