Global Venture Capital Survey: VCs see growth overseas

Deloitte Touch Tohmatsu and the national Venture Capital Association surveyed the chaning investment strategies of the venture capitalists in the continued weak economy. More than half of the venture capitalists polled in the 2009 Global Venture Capital Survey said they would invest in fewer companies in the near future, while 13 % of the more than 700 worldwide respondents said they would increase the number of companies in which they plan to invest. Despite finding sluggish investment trends, the annual survey captured substantial optimism among the investors. Venture capitalists confirm that investments are more likely to increase in countries outside of the U.S. than domestically in the next three years. Half of the venture capitalists surveyed said investment will increase in Asia (excluding India); 43 % named India; 36 % selected South America; 25 % said Europe and the United Kingdom; and just 17 % said investment would increase in North America. 52 % of all venture capitalists surveyed said they already invest outside their home countries. Survey respondents said China stood to benefit most from shifts in investment caused by the economic downturn. As concerning to fundraising, the majority of VCs predicted that more of their limited partners would come from outside their home country, and 38 % said they expected the number of foreign limited partners to remain unchanged. The results of the survey also included another vote of confidence for investment in the clean tech sector. The survey suggests most venture capitalists aren’t adjusting their strategies when it comes to which industries they are funding, and clean tech is one of those industries that’s been getting a lot of attention. More than 60 % of the venture capitalists surveyed said they expect to increase their investments in clean tech in the next three years. Other industry sectors that investors expect to give increase investment to include the medical device and equipment industry and new media and social networking.