Venture Capital Eases Confidence In China

A new survey released in the U.S. shows that while venture capital confidence in China has slipped, it is still at a high level.

The Silicon Valley Venture Capitalist Confidence Index for the third quarter of 2010, based on a September 2010 survey of 37 San Francisco Bay Area venture capitalists, registered 3.70 on a 5 point scale, with 5 indicating high confidence and 1 indicating low confidence. In a concurrent survey of venture capitalists in China, the authors of the survey found confidence declining somewhat although still at a historically high level of 4.03 on the 5 point scale.

This is the 27th consecutive quarterly survey and report. Mark Cannice, professor of entrepreneurship and innovation at the University of San Francisco School of Business and Professional Studies, authors the report. His co-author for the China report, Ling Ding, and Cannice stated in a press release: "China's venture capitalists remain confident due to high economic growth, robust consumer spending, large market potential, viable exit opportunities, and strong government support."

For the survey in the U.S., Cannice indicated that increasing exit opportunities, primarily mergers and acquisitions, along with emerging market and monetization opportunities built on venture-backed technologies in cloud, social, and mobile computing helped support an overall increase in confidence among the majority of the responding venture capitalists in the third quarter survey.

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