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Survey: Recession to Drive Evolution of Venture Capital Industry

Authored by Mark Hefflinger on June 10, 2009 - 9:48am.
New York - The global economic downturn has forced many venture capitalists to alter their strategies, including reducing their short-term investment levels, according to a new survey by Deloitte Touche Tohmatsu and the National Venture Capital Association.

Fifty-one percent of survey respondents said that they are decreasing the number of companies in which they plan to invest.

Once the recession subsides, however, the survey found that the cleantech sector is poised to become the leading investment category, with 63% of venture capitalists expecting to increase their investments over the next three years.

A larger percentage of that money also is expected to come from outside the U.S., with the VC industry expanding significantly in foreign markets such as China.

"As the survey results suggest, we will see more globalization in the next decade, not only in terms of investments but also in fundraising and exits as well," said Mark Heesen, president of the NVCA.

"Those countries that can nurture entrepreneurs and investors as well as offer attractive exit opportunities have the most to gain economically in the next decade."

The complete survey is available at the link below.

 

Related Links:
http://snipurl.com/jutw7 (PDF)

Published in DMW Daily, June 10, 2009
tags: Deals | VC | Reports | Research | Investments | National Venture Capital Association | Deloitte Touche Tohmatsu |



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