January 19, 2008 11:20:24 AM PST
Highly-specialized tech workers in Silicon Valley are faring reasonably well at this point. In fact, there are a lot of positive signs, including a lot of venture capital floating around. However, the cash spigot isn't flowing for everyone.

Despite the economic tough times, there is one area that's showing resilience.

"Unlike the national or state economy, in Silicon Valley, we're still bullish," says Carl Guardino with the Silicon Valley Leadership Group.

Housing, jobs and the economy remain strong in Silicon Valley. Analysts say it has to do with all the entrepreneurs here. As long as they keep coming up with ideas, business models and new technology, the money will keep flowing.

The Silicon Valley Leadership Group's goal is to keep the valley competitive on every level. They recently asked 100 CEOs about their economic outlook in 2008.

"What we're hearing is, overhwelmingly, in 2008, companies still plan to add jobs here or at least keep their base here," says Guardino.

However, new start-ups may be missing from the otherwise flourishing landscape. This year, the economy is impacting what venture capitalists are focusing on.

According to the National Venture Capital Association, in 2007, venture capitalists spent $29.4 billion nationwide. One billion was invested into 43 different green tech companies in Silicon Valley. Many were start-ups.

"When the economy is down, people are not so ready to open their wallets and put money into start-ups," says venture capitalist Richard Helfrich with Alameda Capital.

Helfrich sees money going into already existing companies which have a greater chance of going public. While VCs still plan to invest in developing technologies, their focus will likely be in biotech or multimedia, seemingly safe areas, just in case 2008 becomes the year of a recession.


Load Comments