2009 Venture Capital Investment Survey by Deloitte and NVCA

Deloitte and the NVCA  released their annual Venture Capital global survey findings last month.  The report found that (not surprising) VC firms have been cutting back in their funding of startups.   While it has been a difficult recession, the industry is making some adjustments.

Some summary findings

  • Portfolio Pruning.  51%  are decreasing the number of companies in which they plan to invest and just 13 percent are increasing this activity.
  • Cleantech:  The clean tech sector is poised to become the leading investment category.  Overall 60% of respondents say that cleantech investments are on the rise.  Among U.S., UK and Israeli investors, about half expect to increase their investments in cleantech, while about seven out of 10 AP respondents and European respondents expect their cleantech investments to increase.
  • Globalization:  Globalization of the venture capital industry will intensify in coming years, posing significant competitive questions for the United States, and opportunities for emerging markets such as China.
  • Regional Investments:  Investment levels are more likely to increase in countries outside the United States.  Governments of all countries have a crucial role to play in fostering competitiveness and innovation.  Specific findings include that 52% of the survey respondents are currently investing outside their home countries.  19% of respondents expressed that investment levels will rise in Israel,  50% believe that investment will increase in Asia (excluding India); 43% in India; 36% in South America; 25% in Europe and the UK; and 17% in North America.
  • Government:   66% of venture capitalists would like a tax break from their respective governments. 40% believe that government support for entrepreneurial activity is important; 31% would like governments to encourage more active public markets; and 29 percent believe improved access to private capital sources will help better support innovation.
  • Investment Timing:   According to 51% of the VCs, now is a good time to invest. Only 6 percent believe that it is not a good time to make investments.

The 2009 Global Venture Capital Survey was conducted in the first quarter of 2009 and measured the opinions of more than 700 venture capitalists worldwide.  To view the full survey results visit: 2009 Global Trends in Venture Capital