Global VC Investment Reaches US$40 Billion in the Q4-2007
By: By Big4.com Staff Writers
According to a study by “Dow Jones VentureOne and Ernst & Young”, venture capital activity in Israel, China, Europe and the United States in the year 2007 is on speed to post its maximum annual investment total since the year 2001. More than US$30 billion were invested in the first three quarter of the year 2007. However, Global Venture Capital Investment is expected to reach US$40 billion by the end of the fourth quarter of this year.
The investigation made, revealed that along with high investment growth, the venture capital market shows great interest in medical and cleantech devices. Global investment made in medical device companies exceeded US$3.40 billion in the year 2007. Worldwide investment in cleantech reached US$1.1 billion, which is up by 44% from the US$764.3 million that was invested during the same period of the year 2006.
Gil Forer, the Global Director of Ernst & Young’s Venture Capital Advisory Group, said that the new worldwide increase in venture capital investments has been driven by numerous factors. First, there is a significant demand for innovative technologies in medical technology and energy efficiency all over the world in both promising and grown-up markets. Healthy exit atmosphere is encouraging investment in numerous areas. The venture-backed companies of today need more financial capital in order to establish worldwide operations quickly.
The year 2007 has seen increased IPO activity with approximately 96 IPO increasing more than US$7.70 billion all over the world. The United States accounted for majority of the activity with about 48 initial public offerings completed during the first three quarter of the year 2007.
Gil Forer said, “In India, venture capital investment by both US and local venture capital funds accelerated in the first three quarters of 2007.” He continued, “We’ve seen more than US$777.2 million invested in at least 57 deals in India this year.”
