In the new report, Dr. Cannice wrote “The upward change in direction of sentiment was levered to increasing amounts of available funding to support entrepreneurs trying to introduce breakthrough technologies that aim to transform industries and change the trajectory of business.”
SAN FRANCISCO (PRWEB) February 09, 2018
Silicon Valley Venture Capitalists Confidence Index™ Rises in Final Quarter of 2017
The Silicon Valley Venture Capitalist Confidence Index™ for the fourth quarter of 2017 registered 3.66 on a 5 point scale (with 5 indicating high confidence and 1 indicating low confidence). This quarter’s index measurement rose from the previous quarter’s index reading of 3.43. The Q4 rating based on responses by 29 Silicon Valley Venture Capitalists was still below the 14 year average of 3.71.
This is the 56th consecutive quarterly survey and research report and, thus, provides 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 wrote, “The upward change in direction of sentiment was levered to increasing amounts of available funding to support entrepreneurs trying to introduce breakthrough technologies that aim to transform industries and change the trajectory of business.” For example, Dixon Doll of Impact Venture Capital pointed to a number of factors that made for a healthy entrepreneurial environment, highlighting “the unusually large amounts of new capital being raised by both existing established firms and newbies,” as well as a “fertile exit environment, including lots of VC exits via trade sales to PE firms doing rollups.” Mohanjit Jolly of Iron Pillar indicated, “VCs are sitting on a lot of capital that they need to deploy; and technology vectors are pointing at continued disruption across the board, much of which is being and will be spearheaded by startups.”
However, some venture capitalist respondents were less sanguine. For example, Bob Ackerman of Allegis Capital argued “Silicon Valley is threatened by ‘Too Much of a Good Thing’ underscored by too much capital driving excess valuations in crowded and undifferentiated sectors.” And John Malloy of BlueRun Ventures remarked, “The rhetoric and policy of the current administration are drags on an otherwise positive environment.” Cannice concluded the report, saying, “ample funding, a healthy public market, new options for exits, and a breath of innovation in high potential technology sectors suggests a positive trend for 2018.”
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