San Francisco, CA (PRWEB) May 26, 2004 -
Â Venture capitalists from the San Francisco Bay Area have a high degree of confidence in the entrepreneurial economy over the next six to 18 months, according to a new Confidence Index released today by the University of San Francisco School of Business and Management Entrepreneurship Program (http://www.EntrepreneurshipProgram.org). The USF Silicon Valley Venture Capitalist Confidence Index came in at 4.3 on a 5-point scale, suggesting an acceleration of Bay Area venture financings and entrepreneurial activity.
ÂIf venture capitalists are confident in the start-up atmosphere, they will invest more money in new companies and therefore help create a stronger entrepreneurial environment. This will translate into new company formation and higher growth and more jobs for the local economy,Â said Mark Cannice, associate professor of entrepreneurship at the USF School of Business and Management and co-creator of the Index.
Some of the responding venture capitalists also gave an assessment as to why they had a high degree of confidence in upcoming venture investing. Bryant Tong, partner with Nth Power, has seen a Âchange in the attitude of VCs.Â Kent Goldman, an associate with Venture Strategy Partners, indicated that Âthe main driver is that IPO doors are openingÂ, while Shomit Ghose, partner with Onset Ventures, said that ÂFortune 500 companies are starting to buy again.Â Skip Fleshman, a principal with Asset Management, commented that Âgreat ideas and founders have been hibernating.Â Further, Joe Mandato, partner with DeNovo Ventures, added that Âlots of new money is being raised.Â
The USF Index, created by professors Mark Cannice and Roger Chen, will be issued quarterly. The results for the second quarter will be announced in July. Both Cannice and Chen look forward to an increasing number of respondents every quarter. This time, 24 venture capitalists answered the survey in April.
For more information, contact Mark Cannice, USF Professor, at Cannice@usfca.edu or (650) 483-6846.