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:11/5/2018)... ... 05, 2018 , ... Frederick National Laboratory for Cancer Research ... science research and education in the Frederick County area. , Frederick Center ... to STEM-based undergraduate and graduate degree and certificate programs offered by partnering colleges ...
(Date:11/5/2018)... EVANSTON, Ill. (PRWEB) , ... November 05, 2018 ... ... Technologies Inc., for access to 2Blades’ Transcription Activator Like (TAL) effector code technology ... rights for commercial uses of the technology in plants. Since its discovery in 2009, ...
(Date:10/31/2018)... (PRWEB) , ... October 30, 2018 , ... Rooam ... will launch operations in Chicago this winter. After its acquisition of the Tally payment ... complete transactions and set default tips, Rooam will grow its market share and increase ...
(Date:10/31/2018)... ... October 30, 2018 , ... The ... a very important aspect of experimental biology. Reproducibility of cell-based assays is one ... of choosing the appropriate assay type, there are many more factors to be ...
Breaking Biology Technology:
(Date:12/5/2018)... ... 04, 2018 , ... Lifecycle Biotechnologies, a leading life science ... gallon) SAFEthread Drum. The 100-liter SAFEthread Drum follows the launch of Lifecycle’s ... redesign to the plastic drums being used globally. Manufactured at Lifecycle’s ...
(Date:12/5/2018)... DIEGO (PRWEB) , ... December 04, 2018 , ... ... leverage Fastec’s extensive expertise and existing IP in the development of innovative solutions ... has been integrated into diverse systems from microfluidics to industrial machinery and instrumentation, ...
(Date:11/29/2018)... Pa. (PRWEB) , ... November 29, 2018 , ... ... investment in Semba Biosciences with the intention of acquiring full ownership. The transaction ... Participation Agreement was executed on November 14, 2018. “We are extremely pleased to ...
Breaking Biology News(10 mins):