Venture Interest in Emerging Markets Investing Wanes

Japan, Israel and the United States were the big winners in this year’s Global Venture Capital Confidence Survey. Brazil and China were the big losers.

The survey measures investment sentiment around the globe and this year 403 general partners were interviewed, largely from venture firms but also from growth and private equity outfits. A total of 65% of the GPs came from outside the United States, according to the survey, which was sponsored by Deloitte and the National Venture Capital Association.

The survey uncovered cooling attitudes toward investing in emerging markets.

Brazil and China both saw 6% declines in overall investment sentiment, though confidence levels remain relatively high at 3.33 and 3.26, respectively. Confidence is measured on a scale of 1 to 5, with 5 being the highest.

India also saw a decline.

Japan saw the largest increase in confidence, but remains at a modest overall confidence level of 2.74. The United States witnessed a 4% increase in investor interest with the highest confidence level of any country at 3.79, the survey found.

Interest in Israel increased 6% to a confidence level of 3.55, and Germany was up 2% to a confidence level of 2.97.

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