THE PRICING OF SUCCESSFUL VENTURE CAPITAL-BACKED HIGH-TECH AND LIFE-SCIENCES COMPANIES

The HVA/VentureOne Study examines 1,247 private venture capital financ ings of 479 electronics, semiconductor, software, communications, biot echnology, and medical devices companies that went public between Janu ary 1993 and June 1997. The authors identify the pricing drivers and e xplain the changes in the corporate valuations between various rounds of financing and the initial public offering. For the purpose of analy zing the factors and measuring the implications of these market valuat ions, the companies are segmented according to stage of development, t ype of financing round, industry and year of IPO. The Study interprets the data by means of a transactional analysis and a statistical analy sis.