Deloitte VC Industry Survey Supports Merar’s Choice of Geographical Focus (Part 2)

Research findings confirm that Merar is strategically positioned to offer attractive opportunities to investors. In stark contrast to the gloomy sentiment of western VC firms, investors in the rapidly growing emerging economies of Asia and Latin America are markedly optimistic about their markets, according to the 2010 Global Venture Capital Survey of Deloitte and NVCA.

A vast majority of venture capitalists in China, India and Brazil expect the number of venture firms in their country to grow: 99% of respondents in China, 97% in Brazil and 85% in India.Yet, 62% of respondents in China point out that the unstable regulatory environment in the country may present a challenge.

Emerging market VCs are also becoming more inward-looking as the investment opportunities within their countries become more and more numerous. Only 34% of all respondents expect to increase their investment activity outside their own country in the future, but the figure for the BRIC countries is three times lower than the average for developed economies: 11% in China, 15% in India and 19% in Brazil, as opposed to 49% in the UK, 50% in Israel and 56% in France.

The limited partners of emerging market VCs are showing distinct optimism about their home countries and a willingness to invest domestically: 92% of respondents in Brazil, 91% in China and 76 % in India.