Confidence Sags Slightly Among Silicon Valley Venture Capitalists

An ongoing survey of 37 venture capitalists in Silicon Valley, started more than two years ago, has reported the sharpest quarterly drop in confidence among VCs in the survey’s history.

Confidence – essentially, a measure of their interest in investing — fell to 3.89 on a scale of 5 in the second quarter. Last quarter, the level was 4.15.

Is this bad? Not too much, at least not yet. The drop signals “a shift from broad confidence to increasing caution” according to the University of San Francisco’s Entrepreneurship Program, which conducts the survey.