PWC Moneytree Survey shows increase in VC investments into Media and Entertainment

The PWCMoneyTree Survey for Q4 2006 shows in increase in deals over the last 5 years.  VCs invested over $25 billion in 3,416 deals in 2006, a 10 percent increase in deal volume and a 12 percent increase in dollar value.   2006 had significant growth in life sciences, biotech and medical devices, and a strong year for Media/Entertainment, Energy and Web 2.0 companies.  In particular, Media and Entertainment companies raised $1.6 billion in 299 deals (compared to 2005 when $1 billion went into180 deals). Telecom raised $2.6 billion, with wireless accounting for 44 percent of the Telecom sector deal size.  The study and related links can be found here:  http://www.pwcmoneytree.com/moneytree/index.jsp

New England had over 400 deals in 2006 (11% of national deal volume in deal size), second only to Silicon Valley, which had over 1100 deals (35% of national deal volume in deal size). 

 Another report provides valuation tracking going back to 1997.  The average pre-money valuation for “Early Stage” (i.e. Series A) seed level deals for Q3’06 was just over $6M, with a typical seed round around $5.6M.  Expansion  Stage deals (i.e. Series B or Series C) had an average pre-money valuation of $54M, with an average deal size of $13M.  The report can be found here:  http://www.pwcmoneytree.com/exhibits/Valuations_95_06Q3_12MonthRollingAvgs.xls

 

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