"You can tell from the relaxed manner of venture capitalists at recent Christmas bashes -- things are getting better. The Woodside Fund brought out the big wines, Duckborn and Caymus. doll Capital Management, fresh from its hit with Chinese job site, 51Job, rented out the grand Asian Art Museum in San Francisco, offering an open bar and lavish food. Not to be outdone, Mayfield rented out the Computer History Museum last night, serving equally quality nosh. We bumped into Mayfield partner Kevin Fong who, while sipping at a cocktail, explained how much better things are this year than the past couple.

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Valuations of U.S. venture-backed companies increased for the fifth consecutive quarter, reaching $13 million overall in the third quarter of 2004, according to VentureOne, a unit of Dow Jones Newswires. This is the highest overall median premoney valuation since 2001, and an increase from the $11 million median posted in the third quarter of 2003."