Deloitte report details the regions and sectors investors are most confident in – this is what they found
Deloitte’s annual Global Venture Capital Confidence Survey has shown that investors worldwide are most optimistic about the United States, followed by Israel and Canada.
The consulting firm’s report was heavily focused on the U.S. market, with infographics measuring confidence in U.S. urban markets and comparing American to non-U.S. concerns about government relations with local tech industries. The U.S. environment overall earned a confidence score of 4.17 on a scale of 1 to 5, with Israel, Canada, China, the UK and then India ranking afterwards.
How did the market drop affect the survey?
The survey is based on attitudes prior to last month’s global market decline, but already shows some signs of people looking for security despite assessments in the report that investors feel bullish. There was a 10% jump in venture funds raised and confidence in the IPO market, which has risen for the fourth straight year. But confidence is higher in established markets like the U.S., Canada and Israel rather than developing tech hubs like Brazil and Mexico: Brazilians themselves showed the least confidence in their own home economy, probably weighing down the survey.
Chinese investors were the most confident in their home government’s ability to form industry-supporting policy and have tremendous confidence in their domestic IPO market. That sentiment might have changed though since the survey was taken in May and June.
By sector, cloud computing aroused the most optimism in those surveyed at 4.18 on a scale of 1 to 5. The biggest increase in confidence was in biopharmaceuticals, jumping .23 to 3.53. In perhaps a sign of developments to come, support dropped the most in social media, down .22 to 3.29 while energy tech dropped slightly to 3.02. Newly ranked, confidence in the Internet of Things (IoT) industry is strong at a score of 3.95 with strong interest among the 10 countries surveyed.
Most respondents were from the U.S. (37%), followed by Finland (13%) and Israel (9%). The survey was conducted in May and June, prior to the selloffs in world markets in August. It was conducted jointly by Deloitte & Touche LLP and the National Venture Capital Association (NVCA) and surveyed 218 participants.
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