Tuesday, April 20, 2010

WTIA VC Survey: VCs Optimistic, But Still Concerned

The Washington Technology Industry Association is releasing its results today from its Q2 2010 Venture Capital Outlook Survey, saying that the venture capital community in Washington is optimistic in revenues and hiring for their portfolio firms--but are still concerned about the economic recovery and overall business conditions. According to the survey, local venture capitalists are seeing some hiring among their portfolio, with a quarter of them expecting their portfolio will increase their workforce by more than 10 percent over the next twelve month. Among other data collected in the survey, VCs appear to feel as if deal flow is about the same compared to last quarter; about 76 percent expecting either "moderately better" or "substantially better" revenues in the coming quarter; and most firms--75 percent--expect to make 1 or two investments in the coming quarter in Washington. The sweet spot for investments, according to the survey, is between $3 and $6M in a round (38 percent), with most interest for the VCs surveyed in seed (43 percent) and Series A (43 percent) funding rounds.