The visitors scored inside four minutes when Carlos Tevez hooked in, only for NikolaZigic to poke in David Bentley's low free-kick for a precious equaliser.
Birmingham beat West Ham in the Carling Cup semi-final in January and their victory on Sunday, courtesy of Nikola Zigic's 65th-minute winner, lifted them out of the bottom three.
Valencia stormed out of the blocks in the second half and quickfire goals from David Silva and NikolaZigic put them in front, before Houssine Kharja drew the Italians level from the penalty spot.
Former Rangers manager Alex McLeish has been vocal in his desire to sign him for Birmingham but has cooled his interest after handing a new contract to Scotland striker Garry O'Connor and this week signing Serbian striker NikolaZigic from Spanish side Valencia.