Survey predicts more Venture Capital Investments in 2014

A survey conducted by the National Venture Capital Association (NVCA) and the Dow Jones VentureSource, predicted a higher number of venture capital investments from both venture capitalists and COE’s in 2014.

Approximately 59% of the venture capital firms surveyed stated they expected a greater level of venture investments. Likewise, 57% of CEO’s reported the same in their survey. These numbers represent a clear up tick from the year before. When this same survey was conducted in 2012, only 27% of venture capitalists and 43% of CEO’s thought there would be an increase of venture investments in 2013.

These results reflect a greater level of optimism. Those that participated in the survey predicted that 2014 would bring improvements in initial public offering, volume for venture-backed companies, greater employment and improved returns. Venture capitalists and CEO’s demonstrated an overall belief that the business environment is improving and the entrance risks for new entrepreneurs is decreasing.

Despite this increase in optimism, participants in the survey also felt there were several key legal issues that needed to be addressed by the federal government in order to make it easier for venture capitalists to invest. Bobby Franklin, the president and CEO of the NVCA, addresses these concerns.

“With a gridlocked Congress, it is imperative that we continue to educate lawmakers and regulatory agencies on the positive impact of venture capital to the U.S. economy and the unique attributes that make our startup ecosystem the envy the world. Case in point – immigration reform…we cannot allow the politics of the broad immigration reform issues to overshadow the line item we are focused on – immigrant entrepreneurs and the creation of a new type of visa to support them.”

Here are some more results from the survey that many found interesting.

  • 73% of venture capitalists predicted an increase in investments in business information technology
  • 63% of venture capitalists predicted a decrease of investments in clean technology
  • Roughly 50% of both venture capitalists and CEO’s are optimistic about the 2014 exit market

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