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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.
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| SOURCE KPMG LLP Copyright©2008 PR Newswire. All rights reserved |