Report: Silicon Valley Venture Capitalists' Confidence Declines

The confidence of Silicon Valley venture capitalists has dropped steeply, according to a quarterly survey released Tuesday morning. That follows a strong upward surge in confidence in the previous quarter.

University of San Francisco Professor Mark Cannice authored the report and says he doesn't expect this recent volatility to lead to significant changes in venture capital funding.

"There's continued confidence in the innovative capacity and the diligence of entrepreneurs in the Bay Area.  And there's certainly positive technology trends that are centered here.  And this is still where the predominant amount of venture capital is being invested," Cannice said.

Cannice attributes the most recent drop in confidence to concerns about the world economy, new regulations in health care, and disappointment over the Facebook IPO.

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