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June 24, 2005

One in five US VC firms looking outward

US-based venture capitalists expect to expand their global investments, with China and India among their top targets, according a survey conducted by Deloitte & Touche LLP and the National Venture Capital Association (NVCA).

According to the survey, 20 percent of U.S.-based VC respondents plan to increase their global investment activity over the next five years, up from 11 percent currently investing abroad. Forty-two (42) percent plan to invest abroad only with other investors that have a local presence; 39 percent plan to develop strategic alliances with experienced foreign-based venture capital firms; and 30 percent plan to open satellite offices in select regions globally. The U.S. VCs indicated they expect to maintain their U.S. investment presence, both in terms of physical presence and investment levels.

Conducted between February and April 2005, the survey measured attitudes and intentions regarding investment regions and industry sectors of 545 venture capitalists worldwide.

Arun Natarajan is the Editor of TSJ Media, which tracks venture capital activity in India and Indian-founded companies worldwide. View sample issues of TSJ Media's Venture Intelligence India newsletters and reports.