Conducted in the second quarter of 2007, the survey measured attitudes and intentions of more than 500 venture capitalists worldwide. "U.S.-based VCs are essentially dabbling in global markets, with the majority of U.S. VC respondents indicating that less than 5 percent of their capital is invested overseas, generally in less than three deals per fund," said Mark Jensen, national managing partner of Deloitte's Venture Capital Services. "VCs are making the majority of their foreign investments in areas with higher quality deal flow, entrepreneurial environments, and access to foreign markets, as well as places where they have experience and thus greater comfort levels."
"There is a small but dedicated group of venture capital pioneers who have embarked upon a global strategy and are driving foreign growth. But as a whole, the venture capital industry has not embraced direct global investment yet," said Mark Heesen, president of the National Venture Capital Association.
"The adage that 'venture capital is a local business' still rings true. U.S. VCs want to stay close to their portfolio companies, and they believe there are enough quality deals here to support their funds. That said, there is no question that the movement to globalization of venture capital is real. It is just a longer ways off than once thought."
