Even though I said I wasn’t surprised by this week’s 2010 venture capital predictions, one item did catch my attention — the slide where 48% of U.S. VCs said they expect more foreign LPs to invest in their funds next year.
VCs are telling the National Venture Capital Association that the percentage of foreign money in their funds has been climbing from 5% to as high as 15% or 20%, said president Mark Heesen. Some LPs are attracted to the U.S. because funds here tend to offer more exposure to early stage startups than European or Asian funds, which are very late stage and more like private equity.
Also, foreign investors are more sophisticated than they used to be — an inevitable outcome of globalization. “They think, if I learn it in the U.S., maybe I can do it in my own geography,” Heesen said.