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PRINT THIS PAGE US later stage funding on four-year high in second quarter27/07/2005. Source: AltAssets. 
 The value of later stage US venture capital funding reached a four-year high of $2.4bn in the second quarter of 2005, new figures from the MoneyTree Survey by PricewaterhouseCoopers, Thomson Venture Economics and the National Venture Capital Association show.
For the first six months of 2005, later stage investing amounted to 41 per cent of all dollars, far above the 2004 average of 34 per cent and a ten-year high. However, the average post-money valuation slipped to $59.9m for the 12 months ending Q1 2005 compared to $63.5m for the Q4 2004 period.
Funding for start-up and early stage companies jumped to $1.3bn in the second quarter of 2005, compared with $830m in the prior quarter, on the strength of a $311m deal - the largest single round in the last five years. However, even excluding the large deal, dollar investing in these companies still rose in the second quarter.
Investing in expansion stage companies held steady at $2.1bn in the second quarter.
Mark Heesen, president of the National Venture Capital Association, said, 'The strength at the early and late stage ends of the venture spectrum indicates where we are in the current investing lifecycle. Many venture capital firms are deploying the final portions of current funds into late stage rounds while those that have recently raised new funds are focusing more on earlier stage deals.'
'We expect to see the scales tip towards early stage as we move through the next 18 months. We are encouraged to see investment levels remain within the 'RIPE' zone of $4-6bn as this continues to reflect a sustainable pace,' Heesen continued.
Tracy Lefteroff, global managing partner of the venture capital practice at PricewaterhouseCoopers, added, 'We're seeing both consistency and diversity - consistency in the overall level of investing, and in the overall ranking of industry sectors. At the same time, we have diversity across stages of company maturity, and first-time vs. follow-on rounds. The largest deals of the quarter demonstrate diversity on all counts. It's a healthy balance.'
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