Global Venture Capital: Ernst & Young Reports on Important Trend

One of the most lucrative investment industries,apparently it has only just begun. China and India lead
venture capital, underwent a period of tremendousthe way, and are still in the early stages of market
transition last year, and with that transition signaleddevelopment for both the economies and
passage into a new venture landscape.consumer-oriented services.
"The convergence of globalization, Web 2.0, mediaIn the areas of technology, these emerging global
and innovations in IT and life sciences are furthermarkets present tremendous opportunity and
indications that the venture capital industry isgrowth. The market potential, fast-growing
operating in a new environment" states a reporteconomies and advantages in either cost of
issued by Ernst & Young that examines the rapidlytechnology make these global venture investment
occurring changes in this market, and the impact thatopportunities extremely attractive to U.S. backed
these changes have had on investors.venture capital funding.
Global venture investments were the "hotbeds" forWhile much is being said about the opportunities that
venture capitalists last year, with China and Indialie in these emerging global markets, venture
topping the list of global activity. The emergingcapitalists must remain aware of the potential pitfalls.
markets there have created several waves of IPO's,Some of the most important and difficult challenges
venture-backed business startups, and plannedthat remain to be addressed are the regulations
investments by Intel, Cisco, and Microsoft.surrounding intellectual property, the lack of local
With the $4 billion in US funds that were invested inNASDAQ-like exchanges for exit strategies, and the
these markets last year, it would seem that globallack of a comprehensive venture capital law in many
venture capital has saturated the market, butof these developing and emerging markets.