PRINT THIS PAGE US venture-backed M&A valuations rise sharply in Q1 0411/05/2004. Source: AltAssets. 
 In a sign that things may finally be looking up after several years of depressed private company valuations, the amount generated by US venture-backed mergers and acquisitions increased 75 per cent in the first quarter of 2004 compared to the previous quarter, according to Thomson Venture Economics and the National Venture Capital Association (NVCA).
During the first quarter of this year, 77 venture-backed companies were merged or acquired for a total disclosed value of $4.03bn, up sharply from the fourth quarter of last year when 71 targets accounted for $2.3bn. These figures represent the fourth straight quarter-on-quarter improvement in M&A-based liquidity after two years marked by lethargic exit markets.
'Liquidity is king in venture capital,' said Mark Heesen, president of the NVCA. 'It's been several years since venture-backed companies have had viable liquidity options. The rise in valuations is a positive development towards healthy returns.'
A sector breakdown showed software targets continue to dominate with 23 deals and a total disclosed value of $1.35bn, including two of the top ten transactions. Six computers and peripherals transactions accounted for $524.5m, up dramatically from last quarter's $7m, and medical devices and equipment targets also witnessed an upsurge in deals, with seven companies being acquired for $517m.
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