PitchBook released their 1H 2015 VC Valuations & Trends Report . Near the end of it, you can see Austin and Denver/Boulder clearly have the lowest early stage (Seed, A, B) median valuation based on PitchBook's data. This resonates with what I see and know being involved deeply in Austin, the increase in outside investors spending more time here, and generally seeing rounds across the nation and internationally via Techstars and other available data.
More than anything, the reason I'm most excited about this number is the looming valuation correction that will happen in the near-ish future. An ecosystems that clearly doesn't need a correction across the board is Austin. We also have reasonable economics for talent, living expenses, and are seeing healthy growth as city, in general.
Looking at the numbers YoY we see that Austin and Denver/Boulder already saw a small dip from 2013 to 2014.
Austin has plenty of ground to cover for better early stage funding— we aren’t perfect. I think correcting the weak competitiveness and drive perception that worries outside investors [on the coasts] is a good place to start. What we do know is the valuations are healthy and companies that are doing well will provide the right opportunities for investors to see their investment grow with subsequent rounds.