Silicon Valley Venture Capitalists’ Confidence Edges Higher in Q4 Despite Continuing Economic and Political Uncertainty

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The Silicon Valley Venture Capitalist Confidence Index® for the fourth quarter of 2012 registered 3.63 on a 5 point scale (with 5 indicating high confidence and 1 indicating low confidence). This quarter’s index is up from the previous quarter’s confidence reading of 3.53.

“Even with the political headwinds, opportunities arising from positive technological and social trends have appeared and are being ably addressed by determined entrepreneurs and their venture backers," said USF Professor Mark Cannice.

The Silicon Valley Venture Capitalist Confidence Index® for the fourth quarter of 2012, based on a December 2012 survey of 30 San Francisco Bay Area venture capitalists, registered 3.63 on a 5 point scale (with 5 indicating high confidence and 1 indicating low confidence). This quarter’s index is up from the previous quarter’s confidence reading of 3.53.

This is the 36th consecutive quarterly survey and research report, providing unique quantitative and qualitative trend data and analysis on the confidence of Silicon Valley venture capitalists in the future high-growth entrepreneurial environment. Mark Cannice, department chair and professor of entrepreneurship and innovation with the University of San Francisco (USF) School of Management, authors the research study each quarter.

In the new report, Dr. Cannice indicates, “While concern over the inability of Washington to agree to a course that would ease rather than exacerbate economic uncertainty remained, the responding venture capitalists appeared to be compartmentalizing this external drag on economic activity and focusing on the manageable aspect of building innovative companies with determined entrepreneurs.” For example, Jon Soberg of Blumberg Capital commented, “We are seeing amazing new companies, and the major macro trends such as mobile adoption, improved capital efficiency, and globalization are providing plenty of new opportunities for great companies.” Jeb Miller of Jafco Ventures stated, “We are continuing to experience the massive disruption of major platform shifts to mobile and cloud in both the consumer and enterprise markets…”

Professor Cannice concluded the report stating, “Even with the political headwinds, opportunities arising from positive technological and social trends have appeared and are being ably addressed by determined entrepreneurs and their venture backers. New capabilities in predictive analytics that allow large and small businesses to more effectively serve their customers are being crafted and implemented. Mobile applications for the enterprise are also rolling out to new business sectors and creating efficiencies that allow their adopters to more effectively compete in an increasingly globalized and competitive marketplace.”
For the complete Q4 2012 Silicon Valley VC Confidence report, please visit http://www.usfca.edu/uploadedFiles/Destinations/management/Docs/Cannice_SV_VC_Index_2012_Q4.pdf

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Anne-Marie Devine
University of San Francisco
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