It looks like 2004 was an abnormally strong year for San Diego, and it's now come back down into line with how it's been historically.
It's not as if everyone is shifting away from IT, but there are some other sectors like alternative energy, business services, and outsourcing that have drawn a little bit of interest away from IT.
M&A is a much more lucrative exit for them right now. It is hard to say whether a window will open up again where we'll see strong IPO activity, but I think M&A will remain the more popular exit in 2006.
