Confidence is a funny thing: Too little leads to low self-esteem, too much makes one arrogant.
When venture capitalists are confident, it means they expect their startups to outpace the growth in the overall market—a good thing for startups or a bad thing for the rest of the economy.
Mark Cannice has been tracking venture capitalist confidence for half a decade at the University of San Francisco’s School of Business and reports that venture capital confidence is slowly improving from its fourth quarter 2008 low. “Notable return of exit opportunities—especially headline acquisitions—is breathing life into the venture business model,” Canice says. (Read our earlier coverage).
That’s a sentiment that seems to be shared across the board. When the Venture Capital Journal surveyed investors for its January issue, it heard the same optimism for an M&A surge: