Confidence Improves and the Trend is Up for Venture Capitalists’ in Silicon Valley

San Francisco, CA ( January 29, 2011

Confidence Improves and the Trend is Up for Venture Capitalists' in Silicon Valley

Confidence Improves and the Trend is Up for Venture Capitalists' in Silicon Valley

The Silicon Valley Venture Capitalist Confidence Index® for the fourth quarter of 2010, based on a December 2011 survey of 35 San Francisco Bay Area venture capitalists, registered 3.75 on a 5-point scale (with 5 indicating high confidence and 1 indicating low confidence.) This quarter’s index edged up from the previous quarter’s reading of 3.70 confirming the resumption of an upward trend in VC confidence since its low point in Q4 2008. Please see attached graph for trend data.

This is the 28th consecutive quarterly survey and report and, thus, provides unique quantitative and qualitative trend data and analysis on the confidence of Silicon Valley VCs in the future high-growth entrepreneurial environment. Mark Cannice, professor of entrepreneurship and innovation, at the University of San Francisco (USF) School of Business and Professional Studies, authors the quarterly report.

In the report, Professor Cannice indicates, “Evidence of an improving exit environment supported a slight rise in confidence among the venture capitalists that participated in the Q4 survey.” For example, one of the survey’s respondents, Roy Thiele-Sardina of HighBAR Partners commented, “We are seeing an increased number of M&A transactions which increases the confidence to fund companies that can be acquired.” Bob Ackerman of Allegis Capital confirmed, “The exit environment for venture-backed companies continues to improve with growing strength in the M&A markets and IPO activity running ahead of last year’s projections.”

Cannice continued, “New technology developments and social trends are creating new market opportunities for entrepreneurs and their venture backers.” Another VC respondent, Venky Ganesan of Globespan Capital Partners expressed, “Venture capital backed start-ups and financing’s are seeing a new renaissance and the reason is ‘Clomosol’. No, it’s not a new drug, but rather my coined term for the four major trends powering technology: Cloud, Mobile, Social, and Local. The wealth creation driven by Clomosol will dramatically impact both the local Bay Area economy as well as the overall technology sector…”

Please contact Anne-Marie Devine at abdevine(at)usfca(dot)edu for the complete Q4 report.

Media Contact:

Anne-Marie Devine

University of San Francisco



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