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

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More than half of the venture capitalists surveyed in the 2009 Globa l Venture Capital Survey conducted by and the said they woule invest in fewer companies in thenear future, while 13 percent of the more than 700 worldwide respondents said they would increase the numberd of companies in whicjh they plan to invest. Despite sluggish investment, the annuakl survey captured substantial optimism amongh theinherently risk-taking investors.
“While the recession has slowed the pace of venturre investing in theshort term, it may very well have expeditesd the global evolution of the industry in the long said Mark Jensen, Deloitte LLP’s national managing partner of venturd capital services. “In recent many entrepreneurs who have been educated in the United Statesw have returned home to startr companies in theirhome countries. The playing field continue s to level out in terme of new innovationhot spots, broader access to capital and growinf regional ecosystems that foster risk taking and capitapl formation.
” And venture capitalistse agree that investments are more likely to increase in countries outsidw of the U.S. than domestically in the next three years. Half of the venture capitalistz surveyed said investment will increase inAsia (excluding India); 43 percenyt named India; 36 percent selected Southy America; 25 percent said Europe and the United and just 17 percent said investment would increase in North Fifty-two percent of all venture capitalists surveyed said they already invest outsid e their home countries.
“As the surveuy results suggest, we will see more globalization in the next not only in terms of investments but also in fundraisin g and exitsas well,” said Mark Heesen, president of the “Those countries that can nurture entrepreneurs and investorsx as well as offer attractive exit opportunities have the most to gain economicallyy in the next he added. Survey respondents said China stoord to benefit most from shift s in investment caused by theeconomicf downturn.
When it comes to fundraising, the majoritty of VCs predicted that more of their limited partners woul come from outside theirhome country, and 38 percent said they expectef the number of foreign limited partners to remaijn unchanged. Other findings from the survey included another vote of confidencer for investment in the clean tech sector. The survey suggestas most venturecapitalists aren’t adjusting their strategies when it comes to whicuh industry they are funding, and clean tech is one of thosw industries that’s been getting a lot of attention.
More than 60 percentf of the venture capitalists surveyed said they expecrt to increase their investments in clean tech in the nextthrese years. Other industry sectors that investors expect to give increasing investment to includer the medical device and equipment industry and new mediq andsocial networking.