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SVB Analytics Research offers insight into private equity and venture capital investing

SVB Analytics, a provider of valuation and corporate equity management services, has released a research report analysing the value drivers in the world of private equity and venture capit

SVB Analytics, a provider of valuation and corporate equity management services, has released a research report analysing the value drivers in the world of private equity and venture capital.

This first-in-a-series research report entitled After the Bubble: Analysing the Landscape, examines valuation data for thousands of venture-backed technology and life science companies.

According top SVB, the research findings reveal a shift by technology investors to later-stage companies, which is in contrast to a sharp move by life science funds toward investments in companies in their early stages.

The report analyses key drivers of this change, including the expiration of patents among large pharmaceutical companies and the liquidity infusion brought about in the US by the American Jobs Creation Act of 2004.

‘As part of our practice, which provides formal valuation opinions for emerging companies, we uncovered several fundamental questions about the source of value in private equity and venture capital," says SVB president Analytics Jim Anderson. ‘Our goal in pursuing this research is to seek insights that are scientifically rigorous, based on market practices and additive to the body of knowledge in this area.’

The report was co-authored by theoretical mathematician and SVB Analytics research directors Cindy Moore and Jim Anderson, and was funded by SVB Analytics, a member of the SVB Financial Group.

SVB Analytics was formed to provide clients’ demand for assistance with analytical tasks resulting from new tax regulations and accounting standards. As part of this effort, SVB Analytics helps companies comply with the exigencies of IRS Code Section 409A, which requires a formal valuation opinion for private companies every 12 months. SVB Analytics’s next research report, expected to focus on the technology sector, will be out in the fourth quarter

SVB Analytics offers valuation and corporate equity administration services to private, venture capital-backed companies and venture capital firms. SVB’s initial services offerings include fair market 409A valuations and corporate equity tracking and administrative services.  It is a member of global financial services firm SVB Financial Group,

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