Confidence of Silicon Valley Venture Capitalists Falls in 2Q

San Francisco -- The confidence of Silicon Valley venture capitalists dropped significantly in the second quarter, according to the latest Silicon Valley Venture Capitalist Confidence Index. The index, based on a June 2011 survey of 35 Bay Area venture capitalists, registered 3.66 out of 5, down from 3.91 the previous quarter. The figures had been rising steadily since the fourth quarter of 2008. "While many of the participating venture capitalists continued to be confident in the future prospects of the high-growth entrepreneurial environment, an increasing number found reason for caution due to worrisome macro economic trends, seemingly inflated valuations, uneven capital availability and regulatory constraints in the life science arena," wrote report author Mark Cannice, professor of entrepreneurship and innovation at the University of San Francisco (USF) School of Management.
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http://www.usfca.edu/uploadedFiles/Destinations/management/Docs/Cannice_SV_VC_Index_2011_Q2.pdf (PDF)