Silicon Valley Venture Capitalist Confidence Index™ Surges to 14-year High in Q2 2021
SAN FRANCISCO (August 5, 2021) – The Silicon Valley Venture Capitalist Confidence Index™ for the second quarter of 2021 registered 4.16 on a 5-point scale (with 5 indicating high confidence and 1 indicating low confidence). The Q2 Index measurement, based on a June 2021 survey of 32 San Francisco Bay Area venture capitalists, jumped higher from the previous quarter’s reading of 3.82 in its recovery from the pandemic low point of 2.33 in Q1 2020, now reaching a 14-year high in this quarterly survey.
This is the 70th consecutive quarterly survey and research report (since Q1 2004), and provides unique quantitative and qualitative trend data and analysis on the confidence of Silicon Valley venture capitalists in the future high-growth entrepreneurial environment. Mark Cannice, professor of entrepreneurship and innovation at the University of San Francisco School of Management, authors the research study each quarter.
In the new report, Dr. Cannice indicated that, “The high level of capital flows into ventures and the public markets buoyed confidence among the responding venture capitalists.” For example, Dag Syrrist of Vision Capital credited his confidence to the “Gargantuan amount of capital required to be deployed, coupled with the continued low interest environment and the expanded investment opportunities resulting from permanent changes in business process and work environment as the economy reopens.” Cannice also noted that the innovation cycle has been shortened by the pandemic. “The pandemic accelerated the need for technology in almost every aspect of our lives. There's no turning back now,” said Prashant Shah of Monta Vista Capital.
The Q2 2021 report does reflect the concerns of some venture capitalist respondents, however, with Bill Reichert of Pegasus Tech Ventures stating that, “Everyone knows we’re in a bubble. Everyone knows this cannot go on forever. But no one seems to know how this will end, or when.”
Taking into account the balance of venture capitalist commentary in the new survey along with industry trends, Dr. Cannice concluded the report by stating that, “Entrepreneurial spirit supported by a robust innovation ecosystem provide the path for a strong second half of 2021.”
To view the report in its entirety, please contact Kellie Samson at firstname.lastname@example.org.
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