Fenwick & West’s recent survey of venture capital investing leaves room for optimism as the 4^th quarter of 2009 is already underway. The survey tracks numerous points of venture capital spending and is able to highlight percentage changes from quarter to quarter. Although precise explanations for statistical changes are hard to pinpoint, generalizations can be made.

The most notable and optimistic theme indicated from the survey is that investors are becoming more optimistic. This optimism is demonstrated by the 11% price increase of companies from Q2 to Q3, the first such occurrence in 2009. A second significant point is that 41% of valuations have increased in value as opposed to 36% which have decreased. This is also the first occurrence in 2009 where increases in valuations exceeded decreases.

Even though there are still points for concern within the survey, the positive highlights can be coupled with significant economic indicators in order predict a resurgence in the industry. As the major indices continue their slow ascent, unemployment tappers off, and M&A and IPO activates heat up, the venture capital industry is making strides towards a recovery.

 Loading ...