VENTURE CAPITALISTS ARE FEELING
less certain about tech investments these days, but analysts still expect 2015 to end up as a solid year for the tech sector. Findings are based on results of the Silicon Valley Venture Capitalist Confidence Index for the second quarter of 2015, which registered a 3.73 on a 5 point scale (with 5 indicating high confidence). That was a decline from the previous quarter’s index of 3.81 and matched the lowest point in two years. The report, now in its 46th consecutive quarter, is authored by Mark Cannice, a professor of entrepreneurship and innovation at the University of San Francisco’s School of Management in California.
While Cannice noted an “increasing concern about high valuations of venture backed-firms,” he believes that there is “an abiding confidence in the Silicon Valley ecosystem for new venture creation.” Other analysts agreed. For example, Sandy Miller of Institutional Venture Partners commented, “After a surprisingly slow start, the IPO market for venture-backed tech companies has begun to accelerate. I think 2015 will finish strong and carry over in 2016.” Dixon Doll of DCM pointed to “widely available capital, attractive valuations for companies and teams, and a strongly positive liquidity environment.” Adds Venky Ganesan of Menlo Ventures, “The perfect storm of mobile, social, and cloud still remains strong and augers well for the health of the tech eco-system long-term.”
To read the full report, visit www.ivp.com/assets/pdf/news/cannice_sv_vc_index_2015_q2.pdf.