A hot market

This should not be a surprise to anyone who has raised money recently. But valuations are on the rise, according to a report from VentureOne.

The median premoney valuation of venture-backed companies rose to $15.6 million in the second quarter -- up $2.1 million over the same period last year and the highest figure in four years.

"The rise in valuations seems to be related to the increase in liquidity activity, particularly the fact that venture-backed companies are being acquired at higher prices,” said John Gabbert, vice president of worldwide research at VentureOne. “The median amount paid for an acquired company in the second quarter was $70 million, more than $30 million higher than the median amount paid a year earlier. These higher acquisition prices result in driving up the value of recent company financings.”

Here's SiliconBeat's take on the topic.