2014 will be a year of results and not bubbles - report
According to a report by Jeff Bussgang published on VentureBeat, this year will be a full 365 days of economic optimism. Citing recent survey results by the National Venture Capital Association chief executive officers of portfolio companies and venture capitalists are confident about their future, with 86% of the CEO who are eyeing to raise funding said 2014 will be the same or will be much more easier as oppose to last year. Half of the executives were optimistic about the exit environment this year, the report said.
The NASDAQ Stock Market also indicated investor confidence this year, and posted the highest level that was not seen since September of 2000. In 2013, the S&P Index has closed 44 times, which was a record high, and the Dow Jones Index posted 50 all-time highs as week, Both of the indices, said the report, were up at over 20%.
The report also pointed out that analyst firm 451 seconded the argument that 2014 will be a record year, thanks to technology companies who are eyeing for initial public offerings this year. The research data also suggested that mergers and acquisitions will also increase this year as compared to last year, which was considered a solid year for consolidations.
Bussgang quells worries about bubbles happening in 2014. Citing a blog post two and a half years ago, he said, "When analyzing unemployment rates and other macroeconomic fundamentals as well as positive structural elements of the tech economy, the rebound was just beginning and had a good four or five year run in front of it. Sitting here at the end of 2013, I still feel that to be the case. The fundamentals of a rebounding U.S. economy in combination with the disruptive forces of the cloud, mobile, big data and software eating everything remain strong. The start up economy will overheat at some point, it always does, but that point is not now."