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

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More than half of the ventur capitalists surveyed in the 2009 Global Venture Capital Surveyg conducted by and the said they would inves in fewer companies in thenear future, while 13 percentt of the more than 700 worldwidwe respondents said they would increase the numbere of companies in which they plan to invest. Despite sluggishb investment, the annual survey captured substantia optimism among theinherently risk-takingt investors.
“While the recession has sloweed the pace of venturer investing in theshort term, it may very well have expedite d the global evolution of the industry in the long run,” said Mark Deloitte LLP’s national managing partner of venturr capital services. “In recent years, many entrepreneurs who have been educatef in the United States have returnexd home to start companies in their home The playing field continuew to level out in terms of new innovation hot broader access to capital and growingg regional ecosystems that foster risk taking andcapitalp formation.
” And venture capitalists agree that investments are more likely to increaswe in countries outside of the U.S. than domesticallh in the next three Half of the venture capitalists surveyed said investmen t will increase inAsia (excluding 43 percent named India; 36 percent selectede South America; 25 percent said Europe and the United and just 17 percent said investment would increase in North America. Fifty-two percent of all venturd capitalists surveyed said they already investr outside theirhome countries.
“As the survey results we will see more globalization in the next not only in terms of investments but also in fundraisinfg and exitsas well,” said Mark president of the NVCA. “Those countriea that can nurture entrepreneurs and investors as well as offerf attractive exit opportunities have the most to gain economically in thenext decade,” he Survey respondents said China stood to benefit most from shifts in investmeng caused by the economic downturn.
When it comes to fundraising, the majority of VCs predicted that more of their limitede partners would come from outside theirhome country, and 38 percent said they expecteed the number of foreign limited partnersz to remain unchanged. Among limited partners, venture capitalists if any are likely to reduce theifr investments in venturecapital funds, those limited partner s would come from the financiao industry, especially from commercial Other findings from the survey includede another vote of confidence for investmentr in the clean tech sector.
The surveyg suggests most venturecapitalistws aren’t adjusting their strategies when it comesw to which industry they are funding, and cleahn tech is one of those industriess that’s been getting a lot of More than 60 percent of the venture capitalistws surveyed said they expect to increase their investments in clean tech in the next threw years. Other industry sectors that investors expec to give increase investment to includ e the medical device and equipment industry and new medisa andsocial networking.