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VC Trends 2011 UK
 

VC Trends 2011 UK

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2011 global trends_in_venture_capital-uk

2011 global trends_in_venture_capital-uk

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    VC Trends 2011 UK VC Trends 2011 UK Presentation Transcript

    • Global Trends in VentureCapital: State of the IPO MarketJune 22, 2011
    • ContentsKey FindingsIPO MarketIndustry StatsSurvey Demographics Copyright © 2011 Deloitte Development LLC. All rights reserved.
    • Responses and Demographics347 responses from nine countries• 48% from U.S.• 52% non-U.S. countriesSurvey conducted in the U.S., Canada, U.K., China, France, Germany,India, Brazil, IsraelResponses from large, mid-sized and small firms, with the largestconcentration, 36%, with $100 - $499 million in assets undermanagement Copyright © 2011 Deloitte Development LLC. All rights reserved.
    • Key Findings• Over 80 percent of global venture capitalists believe that current IPO activity levels in their home countries are too low• Venture capitalists believe higher returns generated by IPOs are critical in providing superior returns to limited partners and growth capital to developing portfolio companies• Of those who are investing outside their home countries, more than half (57 percent) plan to increase this activity during the next five years and an additional 35 percent plan to maintain their level of investment.• Excitement around IT, healthcare services and clean tech innovation globally Copyright © 2011 Deloitte Development LLC. All rights reserved.
    • IPO Market
    • Is an active IPO market in your home country essential forthe success of the venture capital industry in your country? Is an active IPO market in your home country essential for the success of the venture capital industry in your country? 100% 91% 90% 88% 83% 81% 79% 80% 70% 65% 59% 58% 60% 50% 40% 40% 30% 20% 10% 0% Brazil Canada China France Germany India Israel United United Kingdom States Yes Copyright © 2011 Deloitte Development LLC. All rights reserved.
    • Is an active IPO market in other geographies essential for thesuccess of the venture capital industry in your country? Yes No 49% 51% Copyright © 2011 Deloitte Development LLC. All rights reserved.
    • Is an active IPO market in other geographies essential for thesuccess of the venture capital industry in your country? 100% 100% 92% 90% 83% 80% 77% 70% 63% 61% 60% 50% 40% 36% 33% 30% 22% 20% 10% 0% Brazil Canada China France Germany India Israel United United Kingdom States Yes Copyright © 2011 Deloitte Development LLC. All rights reserved.
    • Respondents who indicated that an active IPO market wasimportant either at home or abroad state why an IPO marketis essential for the success of the venture capital industry70% 59%60% 56% 50%50% 44% 45% 42% 42%40% 38% 33% 32% 32%32% 32% 30%30% 29% 29% 28%30% 21% 21% 23% 20%20% 21% 19%20% 14% 11% 12%10% 8% 6% 5% 5% 6% 5% 4% 0% 0% Israel Germany Brazil India Canada France China United United Kingdom States Provide growth capital to developing portfolio companies Provide superior returns to limited partners Attract public attention to emerging companies Provide access to capital required to compete in global marketplace Copyright © 2011 Deloitte Development LLC. All rights reserved.
    • The current level of IPO activity in your home country is100% 92% 90% 86% 87% 84% 80% 73% 70% 70% 63% 60% 57% 50% 38% 39% 40% 31% 33% 30% 30% 28% 23% 20% 14% 13% 11% 8% 6% 10% 5% 5% 4% 3% 0% 0% 0% 0% Israel Germany Brazil India Canada France China United United Kingdom States Lower than necessary to support the health of the venture capital industry Adequate to support the health of the venture capital industry Higher than necessary to support the health of the venture capital industry Copyright © 2011 Deloitte Development LLC. All rights reserved.
    • Top 3 factors that create a healthy and vibrant IPO market United United Brazil Canada China France Germany India Israel Kingdom StatesA competitive investment banking 44% 14% 22% 14% 50% 29% 40% 24% 30%community for IPOsHealthy investor appetite for equity 94% 77% 75% 93% 92% 90% 70% 84% 81%in public companiesFreely available capital 19% 32% 44% 18% 17% 19% 20% 43% 25%Ability to move capital out of 6% 0% 17% 0% 0% 14% 10% 0% 3%countryEconomic stability 69% 45% 58% 43% 25% 52% 40% 68% 52%Adequate stock analyst coverage 19% 36% 14% 46% 17% 52% 10% 32% 33%Companies with leading edge 19% 50% 28% 36% 67% 0% 40% 24% 27%technologyCompanies that appeal to general 6% 23% 14% 29% 33% 38% 50% 16% 19%public and mainstream mediaEasier reporting for newly public 25% 23% 28% 21% 0% 5% 20% 8% 30%companies• Squares highlighted in yellow = over 50% of respondents selected that factor* This is a multiple select question. Percentages will not add to 100%. Copyright © 2011 Deloitte Development LLC. All rights reserved.
    • Over the next 5 years, which 3 stock exchanges do you seeas most promising for venture backed IPOs for venture-backed companies globally? NASDAQ 87%New York Stock Exchange (NYSE) 39% Shanghai Stock Exchange 33% Hong Kong Stock Exchange 26% London Stock Exchange (AIM) 26% London Stock Exchange 15% Euronext 14% Shenzhen Stock Exchange 13% Bombay Stock Exchange 12% Toronto Stock Exchange 8% National Stock Exchange of India 5% BM&F Bovespa 5% Deutsche Börse 4% Tokyo Stock Exchange 2% Korea Exchange 2% Australian Securities Exchange 2% BME Spanish Exchanges 2% SIX Swiss Exchange 1% Other 2% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Copyright © 2011 Deloitte Development LLC. All rights reserved.
    • Are you currently investing outside your home country? 100% 92% 90% 82% 80% 70% 64% 60% 56% 49% 50% 40% 30% 19% 20% 22% 19% 20% 10% 0% Brazil Canada China France Germany India Israel United United Kingdom States Yes Copyright © 2011 Deloitte Development LLC. All rights reserved.
    • Over the next five years, do you anticipate your investmentactivity outside of your home country will70% 67%60% 56% 54% 50% 50% 50%50% 43% 42%40% 38% 38% 38% 36% 33% 33% 30% 30%30% 25% 25% 25% 24% 22% 20%20% 18% 15% 12% 9%10% 5% 5% 4% 3% 3% 0% 0% 0% 0% 0% 0% Israel Germany Brazil India Canada France China United United Kingdom States Increase Decrease Remain the same Not investing outside home country Copyright © 2011 Deloitte Development LLC. All rights reserved.
    • Industry Stats
    • Anticipated investment levels in terms of total capital over thenext five years - Telecommunications United States 15% 28% 57%United Kingdom 33% 7% 59% China 47% 19% 34% France 36% 18% 45% Canada 8% 42% 50% India 37% 42% 21% Brazil 33% 11% 56% Germany 13% 25% 63% Israel 33% 11% 56% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Increase Decrease Remain the same Copyright © 2011 Deloitte Development LLC. All rights reserved.
    • Anticipated investment levels in terms of total capital over thenext five years - Semiconductors including electronics United States 13% 41% 46%United Kingdom 29% 17% 54% China 23% 42% 35% France 15% 45% 40% Canada 75% 25% India 6% 59% 35% Brazil 40% 60% Germany 50% 50% Israel 29% 29% 43% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Increase Decrease Remain the same Copyright © 2011 Deloitte Development LLC. All rights reserved.
    • Anticipated investment levels in terms of total capital over thenext five years - Software United States 46% 3% 51%United Kingdom 45% 7% 48% China 45% 21% 33% France 20% 32% 48% Canada 38% 19% 44% India 58% 16% 26% Brazil 58% 17% 25% Germany 50% 13% 38% Israel 22% 33% 44% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Increase Decrease Remain the same Copyright © 2011 Deloitte Development LLC. All rights reserved.
    • Anticipated investment levels in terms of total capital over thenext five years - New media/social networking United States 64% 4% 32%United Kingdom 43% 14% 43% China 79% 21% France 58% 4% 38% Canada 69% 15% 15% India 84% 11% 5% Brazil 80% 20% Germany 57% 14% 29% Israel 44% 56% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Increase Decrease Remain the same Copyright © 2011 Deloitte Development LLC. All rights reserved.
    • Anticipated investment levels in terms of total capital over thenext five years - Biopharmaceuticals United States 19% 30% 51%United Kingdom 33% 33% 33% China 83% 17% France 29% 14% 57% Canada 38% 38% 23% India 64% 14% 21% Brazil 73% 9% 18% Germany 22% 22% 56% Israel 29% 29% 43% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Increase Decrease Remain the same Copyright © 2011 Deloitte Development LLC. All rights reserved.
    • Anticipated investment levels in terms of total capital over thenext five years - Medical device and equipment United States 24% 24% 52%United Kingdom 48% 14% 38% China 77% 6% 16% France 42% 11% 47% Canada 42% 33% 25% India 65% 35% Brazil 60% 40% Germany 70% 30% Israel 33% 22% 44% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Increase Decrease Remain the same Copyright © 2011 Deloitte Development LLC. All rights reserved.
    • Anticipated investment levels in terms of total capital over thenext five years - Clean technologies United States 43% 18% 40%United Kingdom 68% 3% 29% China 81% 3% 16% France 67% 17% 17% Canada 58% 17% 25% India 85% 10% 5% Brazil 100% Germany 89% 11% Israel 56% 22% 22% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Increase Decrease Remain the same Copyright © 2011 Deloitte Development LLC. All rights reserved.
    • Anticipated investment levels in terms of total capital over thenext five years - Consumer business United States 32% 9% 60%United Kingdom 15% 30% 55% China 76% 6% 18% France 50% 15% 35% Canada 33% 8% 58% India 90% 10% Brazil 64% 7% 29% Germany 57% 14% 29% Israel 29% 29% 43% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Increase Decrease Remain the same Copyright © 2011 Deloitte Development LLC. All rights reserved.
    • Anticipated investment levels in terms of total capital over thenext five years - Cloud computing United States 68% 1% 31%United Kingdom 60% 16% 24% China 67% 7% 27% France 67% 4% 29% Canada 82% 18% India 75% 25% Brazil 78% 22% Germany 67% 33% Israel 78% 22% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Increase Decrease Remain the same Copyright © 2011 Deloitte Development LLC. All rights reserved.
    • Anticipated investment levels in terms of total capital over thenext five years - Financial services United States 33% 14% 54%United Kingdom 15% 23% 62% China 55% 18% 27% France 40% 7% 53% Canada 30% 70% India 67% 6% 28% Brazil 36% 9% 55% Germany 20% 40% 40% Israel 43% 57% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Increase Decrease Remain the same Copyright © 2011 Deloitte Development LLC. All rights reserved.
    • Anticipated investment levels in terms of total capital over thenext five years - Healthcare services United States 54% 12% 33%United Kingdom 54% 8% 38% China 75% 3% 22% France 41% 6% 53% Canada 44% 56% India 90% 10% Brazil 80% 20% Germany 71% 29% Israel 29% 71% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Increase Decrease Remain the same Copyright © 2011 Deloitte Development LLC. All rights reserved.
    • Survey Demographics
    • Capital under management in $USD60% 54% 50% 50%50% 39%40% 38% 38% 33% 31% 31% 31% 30% 29%30% 29% 29% 25% 25% 25% 25% 24% 23% 21% 19% 20%20% 17% 16% 14% 14% 14% 13% 10% 10% 10% 10% 9%10% 7% 6% 6%6% 5% 5% 5% 4% 3% 0% 0% 0% Israel Germany Brazil India Canada France China United United Kingdom States $1 million - $49 million $50 million - $99 million $100 million - $499 million $500 million - $1 billion More than $1 billion Copyright © 2011 Deloitte Development LLC. All rights reserved.
    • Primary investment focus United States 87% 13%United Kingdom 76% 24% China 81% 19% France 75% 25% Canada 73% 27% India 67% 33% Brazil 56% 44% Germany 83% 17% Israel 70% 30% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Venture Capital Only Venture Capital and Buyout Copyright © 2011 Deloitte Development LLC. All rights reserved.
    • MethodologyThe 2011 Global Venture Capital Survey was conducted jointly by Deloitte & Touche LLP andthe National Venture Capital Association. It was administered to venture capitalists in thefollowing countries: Brazil, Canada, China, France, Germany, India, Israel, United Kingdomand the United States. Deloitte received 347 responses from general partners with assetsunder management ranging from less than $100 million to greater than $1 billion. Multipleresponses from the same firm were encouraged as the survey was a general measurement ofthe state of global investing from general partners, not attitudes of specific firms.The survey was conducted during February and March 2011. Copyright © 2011 Deloitte Development LLC. All rights reserved.
    • This presentation contains general information only and Deloitte is not, by means of thispresentation, rendering accounting, business, financial, investment, legal, tax, or otherprofessional advice or services. This presentation is not a substitute for such professional adviceor services, nor should it be used as a basis for any decision or action that may affect yourbusiness. Before making any decision or taking any action that may affect your business, youshould consult a qualified professional advisor. Deloitte shall not be responsible for any losssustained by any person who relies on this presentation. Copyright © 2011 Deloitte Development LLC. All rights reserved.
    • About DeloitteDeloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited byguarantee, and its network of member firms, each of which is a legally separate and independent entity.Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte ToucheTohmatsu Limited and its member firms. Please see www.deloitte.com/us/about for a detailed descriptionof the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attestclients under the rules and regulations of public accounting. Copyright © 2011 Deloitte Development LLC. All rights reserved.