Venture Growth Predicted in Emerging Markets; Consolidation Expected in U.S. and Europe: Deloitte, NVCA Study

The 2010 Global Venture Capital survey in July 2010 by Deloitte and the National Venture Capital Association (NVCA),USA, which measured the opinions of more than 500 venture capitalists worldwide, also examined the factors contributing to each country’s outlook. The U.S. respondents feel the industry has suffered from a weak IPO market and unfavorable tax and regulatory policies.

More than half the U.S. respondents also believe that limited partners will be less inclined to invest in U.S. venture capital funds in the next five years. Despite the challenges, U.S. venture investors remain optimistic regarding the quality of the opportunities in the U.S., with most predicting a stable or improving environment for valuations and deal flow.



According to the Deloitte, NVCA survey results, more than 90 percent of U.S. survey respondents expect the number of venture firms to decrease between now and 2015, while a majority of venture capitalists in China, India and Brazil anticipate adding more venture firms in their country during the same time frame. Venture capitalists in Europe and Canada also expect an industry contraction in their respective countries though to a lesser extent than in the U.S.

Venture capitalists in the United States widely expect their industry to contract while those in emerging markets, including China, India and Brazil, expect to see their ecosystem expand over the next five years, according to the 2010 Global Venture Capital Survey. The stage has now been set for emerging markets like China, India and Brazil to rise as drivers of innovation as they are increasingly becoming more competitive with the traditional markets.”




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