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MONDAY, NOVEMBER 23, 2009
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Venture Capitalists Start to Regain Their Nerve

Confidence gradually rebounding with stimulus plan

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(Newser) – Venture capitalists are starting to get their confidence back after an exceptionally timid year, the New York Times reports. A key index shows the administration's efforts to stabilize the economy have given investors glimmers of hope. "There is some degree of stability in the financial markets and that allows a little bit of optimism that we will get to the other side of this thing," says the survey's publisher.

"I wouldn’t say we are on a new upward trend yet," he notes, "but I think we’ve at least broken the downward spiral." Respondents to the survey said low company valuations and the wealth of talent working for new companies make now an ideal time to invest—although the economic crisis is making it tough to raise the necessary funds.

"I was in Washington, DC a few weeks ago and there is a positive energy in the air, there was a feeling of hope," the chief of one venture capital firm said.   (AP Photo/Lauren Victoria Burke, File)
A survey of venture capitalists has found that effort to stabilize the financial system is causing confidence to slowly rise.
A survey of venture capitalists has found that effort to stabilize the financial system is causing confidence to slowly rise.   (Shutter Stock)
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There is some stability in
the financial markets and
that allows a little bit of optimism that we will get to the other side of this thing, so it’s more a matter of ‘when’ rather than ‘if'. - Mark Cannice, publisher of the Silicon Valley Venture Capitalist Confidence Index

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