Silicon Valley investors’ mood upbeat

West Coast venture capitalists felt a bit better late in 2010 about the economic climate in which they were putting money at risk.

California’s Silicon Valley Venture Capitalist Confidence index for the fourth quarter of 2010, registered 3.75 on a 5-point scale (with 5 indicating high confidence and 1 indicating low confidence.)

That quarter’s index edged up from the previous quarter’s reading of 3.70 confirming the resumption of an upward trend in venture capitalists’ confidence since its low point in the fourth quarter of 2008. 

“We are seeing an increased number of M&A transactions which increases the confidence to fund companies that can be acquired,” said survey participant Roy Thiele-Sardina of HighBAR Partners.