Ed Sullivan (Partner, KPMG) and Jeffrey McCormick (Managing General Partner, Saturn Partners) announced the results of 100 VC responses last week at Venture Summit East. Check out the video and results below.

Ninety-three percent of those surveyed noted that last year's credit crisis hurt the ability of venture capitalists to raise new capital. More than half feel that trend will last another year or longer.

Even with those fundraising challenges, 74% anticipate an increase in financings over the next year. Similarly, 67% expect the total dollars invested to increase. Responses on company valuations continue the cautious optimism as 47% see an increase in valuations in addition to the 43% who predict they will remain about the same.

Cleantech, the darling of last year's survey, is seeing a fade in the response in 2010. In 2009, 62% of responses predicted cleantech investment will see the greatest increase in funding compared to 25% this year. In fact, 23% anticipate cleantech funding will feel the greatest decrease. Media and digital entertainment (22%) and mobile and telecom (21%) appear to be the beneficiaries of that sentiment.

Transaction activity has been in the news the first half of 2010. Has the IPO market recovered? Is it going to? Seventyfour percent of our survey group think we are more than six months away from an IPO recovery, including 30% predicting a recovery is more than 18 months out. Filling that gap will be merger and acquisition activity, according to respondents. Fifty-four percent expect a significant increase in M&A, with an additional 19% seeing a moderate increase. Only 3% envision a decrease in 2010.