On June 6, 2006, Daniel Zimmerman, an associate at Cooley Godward LLP's business department in Palo Alto, CA gave a talk on the venture and mergers and acquisitions trends in Silicon Valley, CA for life sciences companies.
He observed that there has been an increase in the number and quality of business plans. According to Dow Jones VentureOne/Ernst & Young, Silicon Valley dominates venture investment, accounting for 32% of dollars, with New England at 18% and Southern California in third at 11%.
There has been more new investor led rounds. Most dollars have been directed to later rounds and amounts invested in rounds have been at late 1990s levels. Valuations have been at their highest since 2001. Healthcare valuations continue to outpace IT.
Steady mergers and acquisitions deals in 2006 leave entrepreneurs with money on the table. Mergers and acquisitions remained the primary exit option for entrepreneurs. Initial public offerings activities have been slow, and smaller offering sizes have been seen.
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