Putting money into
start-ups
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.