Venture capitalists’ confidence in the second quarter scaled back to 3.47 from 3.79 on a 5-point scale in the first quarter.
The 34th consecutive quarterly survey, dubbed the Silicon Valley VC Confidence Index Report, measures the confidence of those in the VC hub in the San Francisco Bay Area of Silicon Valley over the next six to 18 months. The current findings of the Silicon Valley Index were based on a survey conducted last month with 30 Bay Area venture capitalists.
Mark Cannice, a professor of entrepreneurship and innovation at the University of San Francisco School of Management, said the decline was due to concerns over macro issues such as what’s happening on the economic front in Europe and China. Based on interviews with the VCs, he said there is a “positive momentum on the cloud, mobile and social-media technology trends.”
“The Facebook IPO allowed early investors to cash out of the their investments and some have gone back to start new funds or invest in new businesses in angel investors,” Cannice said.
Cannice said the concerns over the overseas macroeconomic backdrop is due to startups conducting more business internationally earlier in their life cycle. Cannice explained that firms are scaling globally quickly to get market share to attract investors.
While a few years ago, health-care venture financing was the rage, regulatory constraints have caused some firms to pull back on financing. That has meant more financing available for technology firms, and there doesn’t seem to be a shortage of options.
Jeremy Liew of Lightspeed Venture Partners said in the survey, released publicly by the Silicon Valley Index, “We’re seeing real innovation across multiple Internet categories, from gaming, to commerce, to social, to financial services. It’s the first time in a long time that we’re seeing such broad-based creative energy, versus being confined to one vertical.”
The survey also found that the metrics for which firms are finding financing are also changing. That’s because while fund-raising is taking place, the amounts raised are heading to fewer venture firms, according to Cannice. The result is that those firms “need to make larger investments to move the needle in the fund,” which means it’s harder now for early-stage firms to get financing, Cannice concluded.
While later-stage firms seemingly have an advantage, they still have to prove themselves with better track records and experienced management teams to get the attention of VCs.
According to Debra Beresini of invencor, in her comment for the survey that was also released publicly by the Silicon Valley Index, “The investment community is actively writing checks, but is being very cautious. Experienced teams who have ‘done it before’ have a much easier chance of being funded.”
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia
Azzedine Alaïa's “I-did-it-my-way” ethos stood out starkly at a time when brands are experimenting with consumer-facing fashion shows, coed formats and trans-seasonal collections – anything to perk up lackluster sales of ready-to-wear in an age of Insta-everything. “It’s not creation anymore. This becomes a purely industrial approach,” the late designer told WWD in an interview last year. “But anyway, the rhythm of collections is so stupid. It’s unsustainable. There are too many collections.” Read more about the iconic designer’s life and work on wwd.com, link in bio. #wwdfashion #azzedinealaia (📷: @WWD Archive, 1986) #alaia
Sneaker reselling app @goat’s latest exhibit, "The Greatest: New York," tells the story of New York's sneaker culture. To celebrate the exhibit, an intimate crowd gathered on Thursday night at the pop-up gallery space, located at Platform in Culver City, to hear guest speaker and illustrator @esymai talk about her own rise in streetwear and women in the business. "For me I'm just someone who is creative. I like to create things," said Chang. #wwdfashion
Azzedine Alaïa, one of the most iconic couturiers of the modern era whose body-con designs defined Eighties fashion, has died in Paris. The diminutive Tunisian-born designer, known for his structured knitted dresses with fitted waists and impeccably cut, figure-hugging second skin silhouettes was deeply admired by his peers, and counted supermodel Naomi Campbell - his adoptive daughter - among his inner circle, one of a gang of glamazons including Farida Khelfa, Carla Bruni and Stephanie Seymour who became ambassadors of his style. (📷: Alexandre Guirkinger) #wwdblast