Polachi Inc., a provider of Access Executive Search™ services to technology, clean technology, private equity and venture capital companies, today issued the results of their second annual VC survey, which polled venture capital executives throughout the United States. The survey revealed that 56% of venture capital executives - 98.1% who are Partners or Managing Partners - are more confident and optimistic about the industry today compared to a year ago when an overwhelming number of executives felt the industry was “broken.”

Interestingly, the survey found executives to be split down the middle when it comes to which geographical region currently represents the area of hottest investment opportunities, as 42% indicated the east coast and 42% indicated the west coast/Silicon Valley. The Boston and New York markets are gaining speed with a spike in VC activity.

When asked about the hottest growth areas in the VC industry, Consumer Internet/Web 2.0 received the highest response (73.5%) followed by Cleantech/Energy (53.1%) and Internet Marketing (40.8%).

“Venture firms play a critical role in the development of new technologies and start-ups, which are vital to economic growth and job creation,” said Charley Polachi, Partner at Polachi, Inc. “I’m encouraged to hear that VCs are optimistic about the industry and excited that Boston and New York represent high activity areas.”

71.4% of respondents are not worried about new deals and 72.9% indicate they expect to see a steady deal flow over the next 6 months. When asked to identify which functional trends they were most concerned about, 62% of the executives indicated they were very worried about the uncertain return of exit markets, and the remaining 38% were “worried”. The survey also asked how the tax legislation on carried interest will impact the venture business and 46% indicated it will have a major negative impact, while 16% believe a “work around” will be found.