Venture capitalists are showing more confidence in an economic recovery that will revive the IT business, according to a quarterly survey released Thursday.

The Silicon Valley Venture Capitalist Confidence Index has shown an increase hitting 3.37 on a 5-point scale, up from the previous quarter's mark of 3.03. This is the second consecutive rise since the index dropped to a five-year low in the fourth quarter of 2008.

This indicates that San Francisco Bay Area venture capitalists are very likely to to be sticking money into new IT ventures. Analysts say that venture capitalists expect that the worst of the financial crisis is behind us and most VCs observed an increasingly determined and talented pool of entrepreneurs and a continuing march of innovation.

They say that a lack of money has forced venture capitalists to identify and work with only the "most resilient and creative entrepreneurs" In other words those who will work with less and more costly finance.