Silicon Valley Venture Firms … Cautiously Optimistic

Good article in the San Jose Mercury News about the state of Venture Capital funding and startups in Silicon Valley. With the stock market meltdown in October of 2008, the venture capital industry saw shock waves that sent it into a tailspin. But the climate is improving, and most industry leaders are cautiously optimistic. Venture funding rebounded this last quarter, perhaps setting the stage for Silicon Valley to lead the Bay Area out of the recession as we head into 2010

The latest MoneyTree venture capital report illustrated how clean tech is helping the valley flex its long-standing leadership status in tech. Bay Area startups, which usually
attract about one-third of venture investments, landed a remarkable 46 percent of venture dollars during the quarter. Seven valley companies — three in the clean-tech sector — landed the largest funding deals during the period, adding to a sense of guarded optimism.

“I don’t think we’re completely out of the woods,” Kellogg said. “But there is certainly more optimism.”

The Tri-Valley area certainly benefited in the mid to late 1990’s, as South Bay buyers, many flush with stock option money, migrated this way in droves. In particular, Ruby Hill saw a stream of Silicon Valley buyers with lots of cash snap up custom homes at a steady pace. Certainly, a new wave of start up success could ultimately benefit the Tri-Valley housing market. We are certainly rooting for it…