Silicon Valley Venture Capitalists’ Confidence Jumps Higher in the Second Quarter of 2023, According to University of San Francisco Quarterly Research Study

SAN FRANCISCO (August 30, 2023) – The Silicon Valley Venture Capitalist Confidence Index™ for the second quarter of 2023, based on a June 2023 survey of 38 San Francisco Bay Area venture capitalists, registered 3.69 on a 5-point scale (with 5 indicating high confidence and 1 indicating low confidence). The Q2 2023 Index leapt higher from the prior quarter’s reading of 3.40 and now stands above the 19+ year average of 3.65. 

“The environment for venture capital appears to be recovering from what was a very difficult 2022 for the industry,” stated Mark Cannice, University of San Francisco (USF) School of Management professor and the study’s author. Cannice emphasized that a growing number of VCs who responded to his most recent survey found reasons for optimism, particularly around investments in AI-related startups.

“AI innovation is a major technological shift that benefits most of the Silicon Valley ecosystem,” said John Malloy of BlueRun Ventures in the Q2 report. 

Additionally, Jeb Miller of Icon Ventures reported that “Rapid adoption of AI is accelerating roadmaps and providing significant disruption opportunities for startups across the vertical SaaS, digital health and security landscape.”

Some VC respondents to the Q2 survey research expressed concerns over regional policy issues that are impacting the business environment, as well as the livability in parts of the region. Furthermore, Tim Draper of Draper Associates suggested that “the US government is over regulating, and that places a dark cloud over the entire world of innovation. People are afraid to try things until they have permission.” 

Dr. Cannice concluded the report by noting that “The historical advantage and well-established Silicon Valley entrepreneurial ecosystem should be strong enough to endure current policy hurdles as it has other challenges in the past.”

The survey and research report for Q2 2023 marks the 78th consecutive quarterly report since Q1 2004, providing 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 with the USF School of Management, authors the research study each quarter. 

Those interested in viewing the Q2 2023 report in its entirety should contact Kellie Samson at the University of San Francisco at

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