E&Y Report Review- “Globalizing Venture Capital” – Global venture capital insights and trends report 2011
I came across a good report by Ernst & Young entitled “Globalizing Venture Capital.” The report is based on data from 2005 to 2011 and gives a good overview of where VC capital is coming from as well as where the VC market could be headed.
Here are some interesting heads I pulled from the PDF:
- Top-tier VC funds dominate in the West as VC consolidation continues
- Rapid growth of fund-raising in China and India
- While US VC still dominates, Asia is starting to surpass Greater Europe
- Western VC favors earlier-stage investment, while Asia favors later stage
- M&A remains key exit route in the West
- IPOs make up majority of exits in China and India
- Angel investors become a growing funding source
- The US maintains a strong lead, with about 70% of global investment in any given year, driven by Silicon Valley, Massachusetts, Southern California and New York City.
- The 2011 VC market in the US is recovering to the levels seen just before the irrational dot-com spikes of 1999 and 2000.