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

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More than half of the venture capitalists surveyes in the 2009 Global Venturde Capital Survey conducted by and the said they woulds invest in fewer companies in thenear future, whil 13 percent of the more than 700 worldwide respondentd said they would increase the numbet of companies in which they plan to invest. Despitee sluggish investment, the annual survey captured substantial optimism amongg theinherently risk-taking investors.
“While the recession has slowex the pace of venture investing in theshort term, it may very well have expedites the global evolution of the industrg in the long run,” said Mark Deloitte LLP’s national managing partnerd of venture capital services. “In recent years, many entrepreneurs who have been educater in the United Statess have returned home to start companiea in theirhome countries. The playing field continuexs to level out in terms of new innovationmhot spots, broader access to capital and growing regional ecosystems that fosterf risk taking and capitalo formation.
” And venture capitalists agree that investment are more likely to increase in countriee outside of the U.S. than domesticallg in the next three years. Half of the venture capitalistse surveyed said investment will increases inAsia (excluding India); 43 percent named 36 percent selected Southh America; 25 percent said Europe and the Uniteed Kingdom; and just 17 percenty said investment would increass in North America. Fifty-two percent of all venturee capitalists surveyed said they alreadyu invest outside theirhome countries.
“As the survey resulta suggest, we will see more globalization in thenext decade, not only in termsx of investments but also in fundraising and exitws as well,” said Mark Heesen, president of the NVCA. “Thos e countries that can nurture entrepreneurs and investors as well as offer attractive exit opportunities have the most to gain economically in thenext decade,” he added. Survey respondentss said China stood to benefitt most from shifts in investment caused by theeconomic downturn.
When it comezs to fundraising, the majoritgy of VCs predicted that more of theird limited partners would come from outside theirhome country, and 38 percent said they expected the numbee of foreign limited partners to remain unchanged. Amongy limited partners, venture capitalists if any are likelt to reduce their investments in ventur ecapital funds, those limited partnerx would come from the financiall industry, especially from commercial banks. Other findingas from the survey included another vote of confidence for investmenrt in the cleantech sector.
The survey suggests most venturecapitalists aren’t adjusting theitr strategies when it comes to which industruy they are funding, and clean tech is one of those industries that’s been getting a lot of attention. More than 60 percenrt of the venture capitalists surveyedd said they expect to increase their investmentzs in clean tech in the nextthrere years. Other industry sectors that investors expect to give increase investmenrt to include the medical device and equipment industry and new mediqa andsocial networking.