With the improving domestic entrepreneurial environment and favourable investment scenario, the venture capital industry in India and other emerging markets is expected to expand in the next five years, while it may shrink in developed nations, says a survey.
According to Deloitte's 2010 Global Venture Capital Survey, the majority of venture capitalists in China, India and Brazil expect the number of venture firms to increase between now and 2015, while 62 per cent of respondents globally expect the number of venture firms to decrease during the same timeframe.
The report said that 99 per cent of respondents in China expect the number of venture capital firms to increase in their country in the period under review, followed by Brazil (97 per cent) and India (85 per cent).
On the other hand, 92 per cent of venture capitalists in the US anticipate the number of venture capital firms to decline, followed by France (83 per cent), Israel (80 per cent) and the UK (70 per cent), on account of the unfavourable investment climate and tax policies, difficulty in achieving successful exits and unstable regulatory environment.
Source: Indian Express