Geographical Differences
Venture capital, as an industry, has originated in the United States, and American firms have traditionally been the largest participants in venture deals, and the bulk of venture capital has been deployed in American companies. However, increasingly, non-US venture investment is growing, and the number and size of non-US venture capitalists have been expanding.
Venture capital has been used as a tool for economic development in a variety of developing regions. In many of these regions, with less developed financial sectors, venture capital plays a role in facilitating access to finance for small and medium enterprises (SMEs), which in most cases would not qualify for receiving bank loans.
In the year of 2008, while VC fundings were still majorly dominated by U.S. money ($28.8 billion invested in over 2550 deals in 2008), compared to international fund investments ($13.4 billion invested elsewhere), there has been an average 5% growth in the venture capital deals outside the USA, mainly in China and Europe. Geographical differences can be significant. For instance, in the U.K., 4% of British investment goes to venture capital, compared to about 33% in the U.S.
Read more about this topic: Venture Capital
Famous quotes containing the words geographical and/or differences:
“While you are divided from us by geographical lines, which are imaginary, and by a language which is not the same, you have not come to an alien people or land. In the realm of the heart, in the domain of the mind, there are no geographical lines dividing the nations.”
—Anna Howard Shaw (1847–1919)
“Toddlerhood resembles adolescence because of the rapidity of physical growth and because of the impulse to break loose of parental boundaries. At both ages, the struggle for independence exists hand in hand with the often hidden wish to be contained and protected while striving to move forward in the world. How parents and toddlers negotiate their differences sets the stage for their ability to remain partners during childhood and through the rebellions of the teenage years.”
—Alicia F. Lieberman (20th century)