Global venture capital firms’ confidence in U.S. companies is on the rise

Andrew Sheldon//August 13, 2014//

Global venture capital firms’ confidence in U.S. companies is on the rise

Andrew Sheldon//August 13, 2014//

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According to a survey released Wednesday by Deloitte and the National Venture Capital Association, global investor confidence in the United States in up for the third consecutive year.The uptick results are due to positive capital markets, a wealth of investment opportunities in forward-thinking businesses and a powerful investor climate as causes for the rise, the survey said.

The survey, conducted between May and June 2014 also saw investor confidence up the United Kingdom, Israel and Canada. Confidence is down in Brazil, China and India.

Jim Atwell, national managing partner of the Emerging Growth Company Practice, Deloitte & Touche LLP, said the increased ability to fundraise was a reason for the increase in confidence.

“Improving capital market conditions lifted the pace of initial public offerings, fed by a strong lineup of new and innovative companies like we see on the Technology Fast 500 list, along with increased investor confidence both in the ability to fundraise as well as to achieve favorable returns on investment,” he said in a press release.

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According to the NVCA Yearbook, venture capitalists invested $29.5 billion in 3,382 companies during 2013, with software being the leading sector, receiving 37.3 percent of total investment. Biotechnology was second with less than half the amount at 15.4 percent.

Bobby Franklin, president and CEO of NVCA, was pleased to announce the increased confidence, but was also critical of policy-makers in Washington.

“In order to maintain this enthusiasm in U.S. innovation, policymakers in Washington need to come together to enact policies that support the creation of sustainable, high-growth companies that create jobs and drive economic growth,” he said in a statement.

More than 300 venture capital, private equity and growth equity investors across the globe were polled for the survey.

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