VC Confidence On The Rise

In an indication that tech funding may be on the rise in the future, venture capitalists are feeling sanguine about investing, with an eye on their traditional niche of tech startups, as noted by Bloomberg, citing a University of San Francisco study. The news comes as startups have hit, in the recent past, fundraising stumbling blocks and hesitations of coming public.

The Silicon Valley Venture Capitalist Confidence Index has found that investors fret about overvaluation and IPOs. But confidence was at 3.6 on a five-point scale, with a slight dip from the 3.7 long-term average seen over the past 12 years. But the tougher environment, according to some venture capitalists, fosters a better environment for the companies that indeed have strong business models that deserve finding and funding. In essence, quality should win out.

The investors at large, according to the newswire, “have plenty to be cheerful about.” Overall venture funds raised nearly $23 billion through the first half of this year, with that tally the highest seen in more than a decade. The key focal points have been tied to mobile technology and Big Data. The confidence study also said that the interest seen in other sectors spans virtual reality and even drones. Bloomberg said that the survey took responses from a relatively small sample of fewer than 50 respondents. PitchBook Data reported that one major projection came in late 2008, when pessimism among respondents sent the index down to a 2.8 nadir, with funding down more than 25 percent through the ensuing year.