Results of the December 2013 poll of 32 venture capitalists in the San Francisco Bay Area showed that they were more confident in the fourth quarter of last year. The Silicon Valley Venture Capitalist Confidence Index showed that their confidence reading for the quarter was 3.94 points on a scale of 5, with 5 as the highest confidence and 1 is the lowest. The reading represented an increase from that of the previous quarter and is the sixth quarter in a row when venture capitalists' confidence had increased, a statement about the study said.
The latest results marked the 40th consecutive quarterly survey and research report and the 10th year in which the Index has been taken. The index a one-of-a-kind quantitative and qualitative data and analysis on the level of confidence held by venture capitalists in Silicon Valley regarding tomorrow's high-growth entrepreneurial environment. The quarterly research is authored by University of San Francisco School of Management Department Chair and Professor of Entrepreneurship and Innovation Mark Cannice.
Cannice writes in the report that there appears to be positive momentum for venture investors as well as for the firms in their portfolio. This view was shared by the venture capitalists who responded in the survey. Sandy Miller of Institutional Venture Partners said, "Good performing tech IPOs brighten the prospects for all young tech companies, and I am optimistic that 2014 will be a strong year. There's never been a moment in history when there are so many private venture-backed technology companies with real scale and rapid growth."
The research also featured the sentiment of venture capitalist Tim Draper who said that things are finally looking up for venture capital and entrepreneurship after going through a challenging decade. He said, "I look forward to see the renewed optimism in our world. One reason is that companies have been working hard for a decade with very little liquidity, and suddenly there is liquidity."
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