VCs Are Mildly More Optimistic

The newest Silicon Valley Venture Capitalist Confidence Index is out, and based on a survey of 37 Bay Area VCs, investors are feeling slightly more confident about their industry than they did in the second quarter.

Some of the brighter trends, said the VCs, include increasing exit opportunities that are improving the financial metrics of the venture business. There were 104 venture-backed exits in the third quarter, according to the NVCA and Thomson Reuters (publisher of this blog). New markets — especially opportunities born of more ubiquitous smartphone platforms and the growing popularity of cloud computing — were also included as one reason that VCs are feeling sunnier about their money-making prospects. Not last, some of them pointed to an improving macroeconomic climate, as well as corporate fundamentals, which they’re guessing will prove good news for their industry.

Not all of the VCs surveyed agreed on the current outlook, unsurprisingly. Study participant Graham Burnette of Red Capital Planet told the Index’s author, Mark Cannice, that “I believe we are shifting from bust to boom right now.”

Meanwhile, Shomit Ghose of Onset Ventures, said: “The macro-economy has clearly swung from a mood of cautious optimism at the start of 2010 to something more akin to cautious pessimism. It will take some time yet for this to reverse.”

The full study is here.