A recent survey gauging the confidence level among Silicon Valley investors has shown a decrease in enthusiasm in the third quarter of 2014.
University of San Francisco professor Mark Cannice has published the report as part of the ongoing survey.
As reported by The Wall Street Journal, venture capitalists were asked to estimate their confidence in Silicon Valley's entrepreneurial environment over the next six to 18 months. On a five-point scale, an average of 3.89 was registered. This represents a decrease from the second-quarter reading of 4.02 – the first decline in two years.
According to Cannice, the decline was due to high valuations and an "overheated" market. He did, however, speak positively about the current climate.
"[A] still strong if moderating exit market for venture-backed businesses, healthy levels of investment and fundraising, rampant disruptive innovation, and the ever present belief in the determination of Silicon Valley entrepreneurs kept sentiment at a relatively high level."
Previous reports are available to view via the University of San Francisco's website.
Silicon Valley image via Shutterstock