'Venture capitalists like to keep money close to home'

News Article - 04 December 2007
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Half of European venture capitalists (VCs) prefer to invest their money within the continent, a study by Deloitte Touche Tohmatsu (DTT) has revealed.

In association with the European Private Equity and Venture Capital Association in Europe (EVCA), the 2007 Global Venture Capital Survey found that 51 per cent of VCs strategies are focused close to home.

Igal Brightman, global managing partner of DTT's global technology, media & telecommunications industry group, said: "European VCs predominantly focus on local investment, including those that can potentially provide global opportunities.

"They want the local contact with management, as familiarity with local culture maximises the success of their investment," he added.

Georges Noel, EVCA director and head of the association's VC platform, explained that Europe was identified as having a low risk factor for investors, whereas China was cited most frequently as having high financial risk.

The estimated funds raised for VC reached €17.5 billion (£12.4 billion) in 2006, compared to €5.7 billion in 2003, according to a report by the EVCA.

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