Now may be a good time for startup owners in Colorado to seek venture capital as a source of funding. The Silicon Valley Venture Capitalist Confidence Index for the third quarter of 2016 showed that venture investors are very confident right now. Confidence among venture capitalists has risen by 8 percent since the last index, the largest increase that has been seen since the beginning of 2012.
A professor at the University of San Francisco School of Management conducted the study by surveying 32 venture capitalists. The survey found that venture capitalists have a 3.88 confidence level on a 5-point scale, compared to a 3.6 confidence level last quarter. The 13-year average confidence level is 3.71.
One of the reasons venture capitalists are excited to invest this quarter is that there are many new initial public offerings in the tech industry. Since Twilio made its IPO in June, there have been five other IPOs by U.S. venture-funded technology companies. One of the most notable IPOs was Nutanix, a software company that began selling shares in September. So far, all six of the companies that made their IPO this year have been trading above the initial price and at or above the expected range.
A new business owner who is seeking venture capital funding may want to talk to an attorney about the prospects. These types of investors will likely require a well-written business plan, and an attorney who has experience in providing advice and counsel to start-up companies can often be of assistance when it is being prepared.