VCs to invest in fewer companies: GVC survey
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VCs to invest in fewer companies: GVC survey
Bangalore: More than 700 venture capitalists (VCs) plan on investing in fewer companies because of the global financial crisis, a global survey said. However many of them plan to increase their funding for cleantech companies. While 51 percent of the respondents said that they plan on decreasing the number of companies they invest in, only 13 percent of them said that they plan to invest in more companies. The 2009 Global Venture Capital Survey conducted by Deloitte Touche Tohmatsu and the National Venture Capital Association reveals the mindset of venture capitalists in the current recessionary phase. The survey also reports that 36 percent of VCs intend to move towards later-stage investments while only six percent plan to invest in early-stage companies. On investing in Cleantech companies, 63 percent of the respondents said that they plan to increase funding in these companies. This is not surprising given the fact that many Cleantech companies have been getting huge funding this year. Majority of participants want the government to introduce "favourable" tax policies for entrepreneurs and VCs to support innovation.

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