Venture capitalists in the Bay area aren't as confident as they once were when it comes to cranking out another tech hit like Apple (AAPL) or Facebook (FB). The Silicon Valley Venture Capitalist Confidence Index, compiled from a survey of more than two dozen venture capitalists, has fallen for the second straight quarter to hit a two year low and match the 11-year average. The area's big-spending climate seems muted compared to the first three months of the year as the current tech boom sees signs of a slowdown as investors show waning confidence. Mark Cannice, professor at the University of San Francisco and the lead author of the study said, ‘While confidence in the underlying strength of the Silicon Valley ecosystem and its entrepreneurs’ innovative capacity and determination remained, worries about hefty valuations, the increasing costs of doing business, new demand/supply dynamics created by new venture investor categories, and the potential impact that macro issues may have on the venture environment tempered sentiment.’ He added that the short to medium-term prospects for positive investment results appear somewhat less certain. Cannice cited increasing concern surrounding the high valuations of startups, the surge of investing from hedge funds as well as big institutional investors that all drive up fundraising, the cost of doing business in Silicon Valley, and the potential fallout of macro-economic issues abroad.