We are pleased to report that the venture market remained robust during the third quarter of 2014. For the second consecutive quarter, 81% of all deals were up rounds, once again the highest percentage recorded by the WSGR database since the firm started tracking these numbers. Total dollars invested declined from a record high in Q2 2014, but still exceeded the amount invested in the same quarter last year.

Median amounts raised and pre-money valuations mostly retreated from recent highs, but remained strong. The median pre-money valuation in Series B closings was notably the highest in recent memory, and median pre-money valuations for venture-backed Series A transactions in Q2 and Q3 2014 (both $10.0 million) were substantially higher than at any time since we began tracking medians in 2008.