Venture Capital Rules, Baby! I Think. Maybe. Or Not.

I was scanning the new Fenwick & West Q1 release on Bay Area venture capital activity, and it’s hard not to come to this conclusion: Venture capital rules, baby!

In these troubled economic times what other asset class has seen persistent price increases (17th quarter in a row), with the average round up 49% from the prior investment? That rocks.

But wait. The total number of VC deals was down in Q1, and the total amount of money invested was the lowest since 2006. Further, there is no word on how many of these financings were inside deals, with VCs raising prices on rounds in which they are also the investor in the preceding round.

So, higher asset prices on fewer transactions, and no clarity on how many are inside deals? That sounds familiar. What could it be? Hmmm. Gosh, it sounds like the dying days of the real estate bubble, circa late 2006.