Venture Capital Investment Growing in US & Elsewhere….
According to new statistics from Dow Jones VentureSource, Venture Capital investment picked up in various countries across the Globe by 13% for the first quarter of 2010, but surprisingly, the median amounts invested per deal have also increased in most countries too.
Europe, however, is not looking so healthy, and was the one exception: European investments actually fell by 7% - the lowest number of deals recorded since 2000 when Dow Jones began tracking European Deals.
Europe also had the second lowest amount invested. The US still accounted for the majority of deals & dollars invested worldwide however (919 venture deals worldwide in total, worth $7 billion).
(Total) Investment Statistics:
Not surprising considering their rapid growth in recent years, China saw a massive increase of 35% increase in venture capital (total of $579 million) & Indian investment more than doubled ($259 million - up from $113 million the first quarter of 2009). Israel, the home of many entrepreneurs, suffered a drop in capital deals however the amount of sheer capital in Israel increased by 21% compared to the same period last year.
Median Deal Size Statistics:
In all markets except the US the median deal size markedly increased. Israel's more than doubled (to $8 million). India's average investment amounts exploded (from $3.2 million to more than $10 million per deal), and China's median deal figure was a massive $12 million. Europe's figure grew by a healthy 23% to $3.4 million per deal, however this was still the smallest improvement noted in the survey. By comparison, America's average investment deals shrank from $5 million to $4.5 million each.
Being as overseas investments by Silicon Valley VC's is a relatively new phenomenon that began to emerge only a mere 5 years ago, it would appear that
US Venture Capitalists are finally embracing overseas opportunities and entrepreneurs, and even more surprising is they are comfortable with gambling large
amounts on these emerging foreign companies, too.
- 919 venture deals around the world raised $7 billion in Q1 2010, up 13%
- U.S. accounted for the majority of deals &dollars invested worldwide
- Europe counters upward trend, drops 7%
- Investment in Mainland China rises 35% ($579 million in total)
- Investment in India more than doubled ($259 million - up from $113 million the first quarter of 2009)
- Deals get larger in all regions except U.S.
- Other Q1 2010 VC financing reports: U.S., Europe
Additional stats / info:
- Companies based in the U.S. accounted for the majority of deals (65%) and dollars invested (67%) worldwide.
- During first quarter of 2010, venture investors put a total of $4.7 billion into 597 deals (up 12% from the same period in 2009).
- Investment in Canadian companies spiked 81% over the same period last year.
- In the first quarter of 2010, venture-backed companies in Canada raised $166 million for 21 deals.
- The Information Technology (IT) and Energy and Utilities industries accounted for the majority of capital invested ($63 million and $58 million respectively).
- The median deal size in Canada jumped 31% to $5.4 million.
- IT industry attracted $273 million (€190 million), up 15% from the first quarter of 2009.
- Semiconductors segment: 81% increase in investment.
- Software remained the largest IT segment: $113 million (€79 million) in 28 deals.
- Business and Financial Services industry bucked the region's downward trend, jumping 97%
- Energy and Utilities industry: 73% decline in investment
- Consumer Services industry: 43% decline in investment
- Customer Services industry had largest proportion of capital ($191 million - more than double for the same period last year)
- IT was the second largest industry ($144 million in venture investment).
- $259 million in 21 deals during the most recent quarter (more than double the $113 million given for 13 deals during the same period last year).
- Services industries attracted the most capital ($108 million into Business and Financial Services companies and $102 million in Consumer Services companies).
Statistics Source: Dow Jones VentureSource
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