Venture capital funds are in great health

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The Silicon Valley venture capital climate continues to improve, according to the quarterly VC survey from Fenwick & West, LLP.

The survey examined the valuations -- and terms -- of venture financings for 100 technology companies headquartered in greater Silicon Valley which reported raising capital during the third quarter of this year.

"The results show a continuation of positive trends in the venture environment," said Barry Kramer, partner in the firm and co-author of the survey.

What is more, Fenwick & West's Venture Capital Barometer -- a measurement of changes in share price of companies funded during the quarter -- was up 38 percent.

"The amount of the increase in the barometer was slightly less than the second quarter of 2005; it was the second highest over the past seven quarters," Kramer said.