Bay Area Venture Capitalists' Confidence High with Active IPO Market.New USF USF University of South Florida USF Universal Service Fund (often part of phone bill in US) USF University of San Francisco USF University of Sioux Falls USF University of St. Report Reveals Insights from VC Community SAN FRANCISCO San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden -- The Silicon Valley Venture Capitalist Venture Capitalist An investor who provides capital to either start-up ventures or support small companies who wish to expand but do not have access to public funding. Notes: Venture capitalists usually expect higher returns for the additional risks taken. Confidence Index for the second quarter of 2007 registered 4.15 on a 5 point scale, indicating positive sentiment among Bay Area venture capitalists for the near term local entrepreneurial environment. This quarterly index report is based on a June 2007 survey of 31 San Francisco Bay Area “Bay Area” redirects here. For other uses, see Bay Area (disambiguation). The San Francisco Bay Area, colloquially known as the Bay Area or The Bay venture capitalists. Authored by Professor Mark Cannice of the University of San Francisco • • [ School of Business and Management, the quarterly VC Index (Bloomberg ticker symbol Ticker Symbol An arrangement of characters (usually letters) representing a particular security listed on an exchange or otherwise traded publicly. When a company issues securities to the public marketplace, it selects an available ticker symbol for its securities which investors : USFSVVCI) measures and reports the opinions of Silicon Valley venture capitalists in their estimation of the entrepreneurial atmosphere during the next six to 18 months. "A better environment for exits, particularly IPOs, was the primary driver for the high level of confidence this quarter," said Mark Cannice of the University of San Francisco. "Additionally, high valuations and good deal flow from entrepreneurs both nationally and internationally supported local venture capitalist confidence." "We can see a nice reopening of the public market (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on ) for technology companies," remarked Eric Buatois of Sofinnova Ventures, one of the participants in the survey. Venky Ganesan of Globespan Capital Partners maintains the IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. market opening will fuel additional investments in the Bay Area. "The IPO market is like the river Nile for the venture business--all life eventually flows from it," said Ganesan. Observing the current liquidity trend in the context of the last eight years, David Epstein of Crosslink Capital noted, "there is a confluence of the surviving companies post 1999-2000 bubble becoming stronger and raising reasonable rounds in anticipation of an exit. The availability of capital coupled with a strong IPO market, provides for a very healthy deal flow of quality companies." High multiples and valuations during exits are also complementing the improved IPO environment. "The current climate is characterized by a high amount of activity and liquidity, and upward pressure on valuations. I would expect this to continue for at least six to 12 months," commented Steve Harrick of Institutional Venture Partners. While the level of VC confidence was down marginally from last quarter's three year high of 4.38 (due to some concern about overly high valuations and the staying power of the private equity market), overall the VC confidence is very healthy and bodes well for the balance of 2007. For more information, please contact Mark Cannice at cannice@usfca.edu or 415.385.9591. The full VC Index Report for Q2 is available at www.EntrepreneurshipProgram.org (click on the publications tab). |
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