Optimism is in short supply for venture capital and start up economies in 2012, according to a report from this year’s Venture View predictions conducted by the national Venture Capital Association and Dow Jones VentureSource.
When compared to last year’s survey, forecasts from venture capital professionals are less confident and more measured – with only a few notable bright spots.
VC investment is bullish for information technology, particularly on the consumer side, and start-up company momentum, particularly job growth. Yet predictions in areas such as IPOs and venture fundraising are “tepid” at best, according to the report.
“Due to the large number of market and political factors at play, it is incredibly difficult to predict the state of the venture capital ecosystem in 2012,” said Mark Heesen, president of the NVCA. “Despite the fact that venture capitalists and entrepreneurs are well positioned to thrive, externalities are keeping optimism at bay. The venture industry is not an island until itself and economic instability here and abroad, coupled with a number of public policy issues poised to impact the startup community can offset the positives.”
The survey reflects responses from more than 500 venture capitalists.