
European VCs think globally, invest locally
A recent study sponsored by Deloitte Touche Tohmatsu (DTT) and the European Private Equity and Venture Capital Association (EVCA) shows that more than half of European venture capitalists prefer to invest closer to home where contact with management and knowledge of local culture maximises the success of their investment.
However, more than 80% of European respondents attested to part of their portfolios having significant operations outside the country in which their companies are based. This strategy would aim to make the most of larger deal flow opportunities, to access entrepreneurs and foreign markets.
The study also revealed that venture capitalists also see intellectual property protection as the biggest challenge when considering investing in emerging markets such as India and China.
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