The Silicon Valley Venture Capitalist Confidence Index slipped for the fourth time in the past five quarters, logging a first quarter reading of 3.54, its lowest level in about three years, according to a report.
The decline in the first quarter was a modest 1.4 percent, but reflected caution among investors as late stage valuations pull back and a slow environment for IPOs dims the exit opportunities. Still VCs responding to the quarterly survey said they saw investment opportunities in what has become a buyer’s market for investors.
The confidence index is put together by Mark Cannice, a professor at the University of San Francisco School of Management. The index measures investor sentiment in the venture-backed entrepreneurial market of the San Francisco Bay Area over the next six to 18 months.