According to the 2007 Global Venture Capital (VC) Survey, released on July 12, and sponsored by Deloitte & Touche LLP in cooperation with the National Venture Capital Association (NVCA): the percentage of U.S. venture capitalists investing globally lower than expected.
“Rather, U.S. VCs are investing cautiously in countries such as Canada, China, India and Israel. VCs say they prefer to play globally by investing in domestic companies with significant operations offshore vs. directly investing in foreign entities…“U.S.-based VCs are essentially dabbling in global markets, with the majority of U.S. VC respondents indicating that less than 5 percent of their capital is invested overseas, generally in less than three deals per fund,” said Mark Jensen, national managing partner of Deloitte’s Venture Capital Services. “VCs are making the majority of their foreign investments in areas with higher quality deal flow, entrepreneurial environments and access to foreign markets, as well as places where they have experience and thus greater comfort levels.”
Among the findings:
*Direct Global Investment Strategies Adopted by Minority of U.S. VCs
*Canada, China, India and Israel and Top Global Targets for U.S. VCs
*Global Investment Concerns Shrinking, but Still Prevalent
*Local Presence Key to Successful Overseas VC Investment; VCs Focusing Investment *Limited Partners Expanding Globally
*U.S. Regulatory Pressures Threaten Continued Leadership
