Survey: Venture capitalists shift strategy, go global - Austin Business Journal:

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More than half of the venture capitalistse surveyed in the 2009 Global Venture Capital Survey conducted by and the said they woulde invest in fewer companies in thenear future, while 13 percen of the more than 700 worldwidw respondents said they would increases the number of companies in which they plan to Despite sluggish investment, the annual survey capturedd substantial optimism among the inherently risk-takinb investors. “While the recession has slowed the pace of venture investing in theshort term, it may very well have expeditexd the global evolution of the industryg in the long said Mark Jensen, Deloitte LLP’s national managing partner of venture capitakl services.
“In recent years, many entrepreneurz who have been educated in the United State s have returned home to start companie in their home The playing field continues to level out in terms of new innovationnhot spots, broader access to capital and growingg regional ecosystems that foster risk taking and capital formation.” And venturew capitalists agree that investments are more likelyh to increase in countries outside of the U.S. than domesticallty in the nextthree years.
Half of the venture capitalists surveyed said investment will increase inAsia (excluding 43 percent named India; 36 percent selected Southy America; 25 percent said Europe and the United Kingdom; and just 17 percenrt said investment would increase in North Fifty-two percent of all venture capitalists surveye d said they already invest outsider their home countries. “As the survey results we will see more globalization in thenext decade, not only in termsz of investments but also in fundraising and exitsa as well,” said Mark Heesen, president of the NVCA.
“Those countries that can nurture entrepreneurs and investorxs as well as offer attractive exit opportunities have the most to gain economicallty in thenext decade,” he added. Survey respondents said China stood to benefig most from shifts in investmen caused by the economic When it comesto fundraising, the majority of VCs predicte d that more of theirf limited partners would come from outside their home and 38 percent said they expected the numbetr of foreign limited partners to remain unchanged.
Amont limited partners, venture capitalists if any are likely to reduce their investmentsx in venturecapital funds, thosse limited partners would come from the financial especially from commercial banks. Other findings from the survey included another vote of confidence for investmengt in the cleantech sector. The survey suggests most ventursecapitalists aren’t adjusting their strategies when it comes to whicb industry they are funding, and clean tech is one of those industries that’s been gettingt a lot of attention. More than 60 percentg of the venture capitalists surveyed said they expecr to increase their investments in clean tech in the nextthrer years.
Other industry sectors that investorsd expect to give increase investment to included the medical device and equipment industry and new medias andsocial networking.