Geographical Venture Capital Funding
Venture capital funding, as an industry, started in the United States. Therefore, it is common to find the largest participants in venture deals among the American firms. However, non-US venture investment is growing rapidly. In this article, we will take a look at geographical venture capital funding and the status in different countries.
In an array of developing regions, the Venture capital funding geographically has been used as a tool for economic development In many of these regions, venture capital plays a major role in making it easy for small and medium enterprises to finance their dreams.
Since 2008, there has been an average of over 5% growth in the Venture capital deals outside of the U.S- mainly in China, Europe and Israel. Geographical difference in venture capital funding can be significant. Read on to know more on the subject.
The third quarter of 2006 saw venture capitalists investing around $6.6 billion in U.S. A survey predicts that venture investments in the U.S. will remain between $20-29 billion in the coming years.
With more than 150 member firms, managing over US$100 billion together in venture capital and private equity funds, China Venture Capital Association (CVCA) member firms have had know-how in PE and VC investing worldwide. A variety of industries in China, including IT, biotech, telecoms, media and entertainment, business services, consumer products, general manufacturing and other are the preferred arenas.
Today Europe has a rising number of active venture capital firms. Exceeding €60bn, the venture capital included buy-out funds. The European Venture Capital Association consists of a list of active firms and other statistics. The European venture capital investment has risen to 5% to 1.14 billion Euros during the recent times.
Because of liberal tax incentive through the Scientific Research and Experimental Development (SR&ED) investment tax credit program, the Canadian technology companies have drawn attention from the global venture capital funding community. The SR&ED program does not put any restrictions on the export of any technology or intellectual property that have developed with the assistance of SR&ED tax incentives.
Vietnam and Cambodia
In Vietnam, venture funding capital has been rising rapidly with the establishment of new companies with motivated growth plans by Vietnamese overseas returnees and Vietnamese ex-managers of multinational companies.
The above discussion on geographical variation in venture capital funding will give you a broader outlook on the topic