Start-up investors are feeling a little more hopeful after a rough year, as valuations shake out in Silicon Valley, according to research released Thursday.
Confidence among Bay Area venture capitalists hit 3.59 on a scale from 1 to 5 in the fourth quarter of 2015, the first uptick after three consecutive quarters of declines, the University of San Francisco said. Though confidence has rebounded from its recent trough, it's still below the 12-year average of 3.72, according to the survey of 30 venture capitalists.
Concerns about high valuations and public market volatility have eased as investors forgo hype and focus on business fundamentals, respondents told professor Mark Cannice, who oversees the survey. But as the buzz over so-called unicorns dies down, the rate of new investments may slow accordingly over the next six to 18 months, they said.