Comments
Venture capitalists from around the world say the current level of IPO activity is too low to support the health of the venture capital industry in their respective countries.
According to the 2011 Global Venture Capital Survey sponsored by Deloitte and the National Venture Capital Association, venture capitalists in the US, China, Brazil, India and France found it most important to have an active IPO market in their home countries, followed closely by the UK, Canada, and Germany.
In the US, where there has been a large and active venture capital and entrepreneurial community for many years, 91 per cent of venture capitalists deemed the IPO market a critical element of the US venture capital industry.
More than 80 per cent of global venture capitalists surveyed stated that the current IPO activity levels in their home countries are too low.
The survey, conducted annually, reveals that venture capitalists believe high returns generated by IPOs are critical in providing superior returns to limited partners and growth capital to developing portfolio companies.
Globally, 87 per cent of respondents selected Nasdaq as one of the three most promising stock exchanges for venture-backed IPOs; 39 per cent selected the New York Stock Exchange (NYSE), and 33 per cent cited the Shanghai Stock Exchange.
The vast majority of venture capitalists around the world still look to the US exchanges to provide a healthy and vibrant market, yet 87 per cent of US venture capitalists believe that the current level of IPO activity is too low.
The survey also shows a tremendous amount of excitement around IT, healthcare services and clean tech innovation globally.
Approximately 69 per cent of respondents cited a surge in investment in cloud computing, while 65 per cent plan to increase investment in social and new media.
Clean technology remains attractive with 62 per cent of respondents planning to increase investments in this area and an additional 26 per cent planning to maintain their levels of clean tech investment.
In China and India, there is considerable interest in both biopharmaceuticals and healthcare services.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.