Global Trends in Venture Capital in 2006: US Leads, But VCs are More Cautious No

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The Global Trends in Venture Capital 2006 Survey, sponsored by Deloitte Touche Tohmatsu, indicate a very positive story for venture capital (VC) around the world in 2006. The results of the Deloitte Technology, Media & Telecommunications Group's 2006 Global Venture Capital Survey provides an insight into the attitudes and intentions of venture capitalists throughout the world about the industry sectors for the next five years. Igal Brightman, Global Managing partner, Technology, Media & Telecommunications, feels that "Venture capital is often seen as the life blood of the technology industry, offering the resource and capacity for ideas to be given the chance to develop from conception into stand-alone products/technologies or life changing products and services." Even though it appears that the intersection of emerging mature VC markets is imminent, yet the responses points out that the Venture Capitals are cautious in making their moves to select the appropriate business models. The results of this survey portrays that over half of the respondents are from outside the United States, indicating the growth profile of global Venture Capital communities. Nearly 53% of respondents in the United State and 58% outside the U.S are prepared for a global expansion within a few years. Moreover, the VCs are on the look out for international interdependence and strategic alliance as the key factors of globalization. For two consecutive years, the non-U.S respondents preferred the United States as the top destination for investment. The U.S is also rated by them to hold the No. 1 rank for research and development, manufacturing and engineering. Apart from U.S, the other region identified by the respondents as the potential source of key talent is Eastern Europe. Igal Brightman added "This year's results indicate that while the mature venture capital markets in the United States and the United Kingdom continue to develop, traditional geographical boundaries are less of a barrier as more venture capitalists look to new regions for new ideas, new markets, and new entrepreneurs." The annual Global Trends in Venture Capital 2006 Survey is based on 505 general partner's responses of the VC companies with assets less than $100 million to greater than $1 billion. By proactively managing this report, Deloitte portrays the participation of Big Four firms in raising and solving challenges that is faced by the commercial world. www.big4.com