Navigation Links
Venture Capitalists Bullish on Greentech and Biotech, KPMG Study Says
Date:1/31/2008

China and India remain hot, as VCs face more competition from private

equity and hedge funds

NEW YORK, Jan. 31 /PRNewswire/ -- Venture capitalists will largely direct their investments to the greentech and biotech industries in the coming year, while China and India remain hot destinations for venture funds, according to a recent survey by the U.S. audit, tax and advisory firm KPMG LLP.

In polling more than 350 venture capitalists, entrepreneurs, corporate buyers, investment bankers and research analysts, KPMG found that 51 percent of respondents indicated they expect venture capital activity to continue rising in 2008. Some 34 percent say investment activity will at least remain the same in the coming year and fewer than 12 percent anticipate a decrease in investment volume. KPMG conducted the survey in partnership with AlwaysOn, the venture capital new media organization.

"Globalization and the focus on the health of the planet has VC investors concentrating heavily on capturing emerging-market opportunities, particularly in Asia, while looking for the next-best-thing in eco friendly and medical technologies," said Packy Kelly, KPMG partner based in Silicon Valley and co-leader of its venture capital practice.

When asked to identify the industry sectors that would receive the most capital over the next two years, 24 percent indicated greentech/cleantech, which was followed by biotech/pharmaceuticals at 15 percent, Internet services at 13 percent, and mobile technology was cited by 11 percent.

Outside of the U.S., China and India were the overwhelming investment favorites by 29 percent and 23 percent of the respondents, respectively. Further, 64 percent of respondents indicated that China and India are the most attractive locations for entrepreneurs to find funding, while 61 percent of those surveyed expect both to have increased IPO activity over the next two years.

"There is a clear indication that growth investors have become more global, spreading their capital worldwide," added Kelly. "Not surprisingly, they continue to be bullish on emerging markets and industry sectors that project the most growth in the near future."

Inside the U.S., it appears the West will continue to receive the bulk of capital, with 49 percent of respondents to KPMG's survey indicating this region will see more investment. The West was followed by the Northeast and the Southwest at 19 percent and 12 percent respectively.

The investors surveyed also expect rising merger and acquisition activity in the next year. Forty-nine percent expect an increase, with 33 percent believing it will be about the same levels, and only 11 percent foreseeing a decrease in deals during the period. Nearly half expect the domestic IPO market to maintain its 2007 rate in the next year, with just 26 percent saying they expect it will increase, and about 15 percent anticipating a decline indicating a concern over the market volatility experienced in the second half of the year.

A Changing Investment Community

Perceptions of the investment community are also changing. Venture capital firms are seeing increased competition from private equity and hedge funds as these firms look for novel strategies to deploy their hordes of capital earlier in the lifecycle of innovative companies. In fact, 66 percent indicated that they expect private equity firms will also continue to increase their presence in the venture capital market.

"We are seeing continued convergence between private equity and venture capital," said Brian Hughes, KPMG partner based in Philadelphia and co-leader of the venture capital practice. "Venture capital funds are adding private equity investments, and private equity funds are adding venture capital investments blurring the lines between the asset classes."

KPMG LLP, the audit, tax and advisory firm (http://www.us.kpmg.com), is the U.S. member firm of KPMG International. KPMG International's member firms have 123,000 professionals, including more than 7,100 partners, in 145 countries.

Contact: Manuel Goncalves

KPMG LLP

Tel: (201) 307-7735

mdgoncalves@kpmg.com


'/>"/>
SOURCE KPMG LLP
Copyright©2008 PR Newswire.
All rights reserved

Related biology technology :

1. Cleveland+ Region Attracts $318 Million in New Venture Investment in 2007
2. MedImmune Broadens Focus of Venture Capital Fund to Include New Therapeutic Areas
3. BioMarin and Genzyme Restructure Aldurazyme 50/50 Joint Venture
4. DuPont Joint Venture with Chinese Biotech Firm Strengthens Gene Discovery Research Efforts
5. Jerusalem Global Ventures Announces $200 Million Growth Equity Fund
6. Khosla Ventures and BIOeCON Form KiOR Inc.
7. Vivo Ventures Expands Team with the Addition of James Huang as an Executive in Residence
8. Elbit Medical Imaging Ltd. Announces that Plaza Centers Has Entered into a Joint Venture Partnership to Develop Residential and Office Projects in Romania
9. Gilde Healthcare Partners Closes EUR 150 Million European Healthcare Venture Fund
10. Corium International, Inc., Announces $40 Million Financing led by Essex Woodlands Health Ventures
11. Altheus Therapeutics Secures $3.6 Million in Venture Capital
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:6/23/2016)... June 23, 2016 /PRNewswire/ - FACIT has announced ... biotechnology company, Propellon Therapeutics Inc. ("Propellon" ... commercialization of a portfolio of first-in-class WDR5 inhibitors ... such as WDR5 represent an exciting class of ... precision medicine for cancer patients. Substantial advances have ...
(Date:6/23/2016)... -- The Prostate Cancer Foundation (PCF) is pleased to announce 24 new ... prostate cancer. Members of the Class of 2016 were selected from a pool ... Read More About the Class of 2016 PCF Young Investigators ... ... ...
(Date:6/23/2016)... , ... June 23, 2016 , ... STACS DNA Inc., ... Leader at the Arkansas State Crime Laboratory, has joined STACS DNA as a Field ... DNA team,” said Jocelyn Tremblay, President and COO of STACS DNA. “In further expanding ...
(Date:6/23/2016)... LONDON , June 23, 2016 ... & Hematology Review, 2016;12(1):22-8 http://doi.org/10.17925/OHR.2016.12.01.22 ... Review , the peer-reviewed journal from touchONCOLOGY, ... the escalating cost of cancer care is placing ... a result of expensive biologic therapies. With the ...
Breaking Biology Technology:
(Date:4/26/2016)... April 27, 2016 Research ... Multi-modal Biometrics Market 2016-2020"  report to their offering.  ... The analysts forecast the global multimodal ... 15.49% during the period 2016-2020.  Multimodal ... sectors such as the healthcare, BFSI, transportation, automotive, ...
(Date:4/13/2016)... 13, 2016  IMPOWER physicians supporting Medicaid patients in ... new clinical standard in telehealth thanks to a new ... higi platform, IMPOWER patients can routinely track key health ... mass index, and, when they opt in, share them ... to a local retail location at no cost. By ...
(Date:3/22/2016)... 2016 According to ... for Consumer Industry by Type (Image, Motion, Pressure, ... & IT, Entertainment, Home Appliances, & Wearable ... 2022", published by MarketsandMarkets, the market for ... USD 26.76 Billion by 2022, at a ...
Breaking Biology News(10 mins):