Silicon Valley Bank has published a very interesting white paper titled After The Bubble: Analyzing the Landscape on the topic of formal valuations of technology and life science companies. It contains some very intersting findings. Of particular note:

Life sciences has seen the number of A rounds increase 34 percent since 2003, and almost a 50 percent increase in the total A round dollars (compared to technology’s 24 percent and 18 percent increases, respectively).

There is definitely a comparison here between a 10x return in a technology investment and a big blockbuster drug hit. You’ll also see in the report some specific data on how venture investors are shifting their investments to later stage rounds. Back in 1992 almost 95% of venture investments were for A, B, or C rounds while in 2006 only 60% of investments were in those three stages.

This was the first in a series of reports. We’ll share them with you as we see them.

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