Welcome!

Government Cloud Authors: William Schmarzo, Elizabeth White, Scott Allen, Peter Silva, Kevin Jackson

News Feed Item

Global Investor Confidence in US Soars for Third Straight Year, According to 2014 Global Venture Capital Confidence Survey

Research validates that venture capital fundraising and IPOs are on the rise, with favorable investment outlooks continuing in cloud computing and mobile technology

NEW YORK, Aug. 13, 2014 /PRNewswire/ -- Global investor confidence in the United States significantly increased for the third year in a row, driven by a combination of favorable capital markets, abundant investment opportunities in innovative companies and a strong investor climate, according to the 2014 Global Venture Capital Confidence Survey from Deloitte and the National Venture Capital Association. Moreover, global investor confidence also increased in the United Kingdom, Israel and Canada, but continued to decline in Brazil, China and India, according to the survey.

www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting." border="0" alt="As used in this document, "Deloitte" means Deloitte LLP. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting." align="middle" src="http://photos.prnewswire.com/prnvar/20120803/MM52028LOGO-a"/>

Conducted in May and June of 2014, the 10th annual survey, gauged confidence levels of more than 300 venture capital, private equity and growth equity investors in the Americas, Europe, Asia and Africa, assessing investor confidence on the global venture capital environment, market factors shaping industries, and investments in specific geographies and industry sectors. Confidence levels were measured on a scale of 1 to 5, with a score of 5 representing the most confidence.

"For the past three years the U.S. has seen a significant increase in investor confidence, continuing the trend which began to take hold in 2012," said Jim Atwell, national managing partner of the Emerging Growth Company practice, Deloitte & Touche LLP. "Improving capital market conditions lifted the pace of initial public offerings, fed by a strong lineup of new and innovative companies like we see on the Technology Fast 500TM list, along with increased investor confidence both in the ability to fundraise as well as to achieve favorable returns on investment."

Venture capital fundraising has been picking up steam in recent quarters with U.S. venture capital firms having raised $7.4 billion in new commitments from 78 funds during the second quarter of 2014, according to Thomson Reuters and the NVCA. A 24 percent increase compared to the number of funds raised during the first quarter, marks the strongest quarter for the number of funds raised since the fourth quarter of 2007.

Venture capitalists invested $29.5 billion in 3,382 companies in 2013, according to the NVCA Yearbook. Software was the leading sector, receiving 37.3 percent of total dollars followed by biotechnology, which was less than half the amount at 15.4 percent of total investment. Among first fundings, software led the way with 591 companies getting their initial venture capital rounds, more than 46 percent of all first fundings.

In line with this, the survey found that global investors continued to invest and expressed the greatest enthusiasm for information technology-related sectors that are less capital intensive, particularly  technology, mobile and cloud computing. At the same time, sectors requiring more capital intensive spends including hardware and semiconductors were viewed as the least favorable sectors.

"Continued confidence from global investors in the U.S. is welcome news for American innovators building next generation companies," said Bobby Franklin, president and CEO of NVCA. "In order to maintain this enthusiasm in U.S. innovation, policymakers in Washington need to come together to enact policies that support the creation of sustainable, high-growth companies that create jobs and drive economic growth." 

Global investor confidence grows in the U.S., Israel and Canada, but declines in Brazil, India and China
U.S. respondents' outlook on investing in U.S. opportunities again increased in 2014, scoring an average of 4.17 (up 41 basis points from 2013), according to the survey. At the same time U.S. confidence in the global capital markets grew, rising from 2.70 in 2013 to 2.99 in 2014.

Emerging markets again continued to decline among global investors. When asked about confidence in investing in a particular country, participants rated Brazil at 3.13, down 42 basis points from 2012, China at 3.27, down 18 basis points from 2012 and India at 3.08, down 16 basis points from 2012.

Cloud computing and mobile remain at the top of investor confidence for the second year in a row
For the second year in a row, U.S. venture capital investors named cloud computing (4.29) as the area they were most confident investing in followed very closely by mobile technology (4.28), enterprise software (4.00) and health care IT and services (3.87). Moreover, U.S. investors exhibited the least confidence in energy/clean technologies (2.47) and semiconductors (2.33).

Global venture capital investors showed the greatest confidence in cloud computing (4.11), mobile (4.02), and health care IT and services (3.94). This group showed the least confidence for investments in hardware (2.83) and semiconductors (2.76). The U.S. (4.28) and China (4.20) were most confident in mobile, while Brazil showed the highest confidence in cloud computing (4.31) and health care IT services (4.44). Robotics showed the biggest year-over-year increase up 43 basis points to 3.41

Overall confidence about the global economy increased 33 basis points from the prior year to a score of 3.20. A majority of investors – 55 percent – expressed a neutral sentiment about global economic prospects. Among U.S.-based participants, confidence in the global economy scored 2.96 (up 19 basis points from 2013).

U.S. confidence in domestic government continues to decline
Across the globe, the U.S. maintained its position as the best country to invest in, rating 4.03, trailed by Israel (3.71), Canada (3.48) and Germany (3.38). However, continuing the trend from last year's survey, U.S.-based respondents continue to doubt government's ability to enact policies that support domestic venture capital, private equity and growth equity investment in the coming year, with confidence in government policymaking dropping from a collective 2.17 in 2013 to the lowest among the countries surveyed (2.05) in this year's survey.

"A global environment where capital flows to companies from creation to growth to exit depends, in part, on government policies that encourage investment in new ideas and provide a clear pathway for innovations to go to market," said Scott Sandell, general partner of New Enterprise Associates and chairman of NVCA. "Decreased confidence in government drives capital away from economies, and if more isn't done to improve the U.S. policymaking process, we could lose our foothold as the preeminent destination for innovation investment.  The venture capital community will continue to look toward global economies where governments are committed to fostering the growth of innovation."

Confidence of respondents from 11 other countries in their government's support ranged from very high to very low, averaging a 3, but all of them had higher confidence levels than the U.S. respondents. The highest confidence levels of investors in their home government's ability to help domestic venture capitalists via incentives, policy and legislation were for India (3.83), China (3.63) and Japan (3.58).

For more information and the full 2014 Global Venture Capital Confidence Survey please visit: www.deloitte.com/us/2014vcsurvey. Connect with us on Twitter: @DeloitteTMT and @nvca.

About Deloitte's Emerging Growth Company (EGC) Practice
Deloitte's emerging growth company practice works with innovative high-growth companies on their way to becoming the next generation of market leaders. Through our multidisciplinary approach focused on quality, our team of dedicated professionals understands the challenges that venture capital-backed companies face and offers a broad perspective on emerging issues, leading practices and industry trends. Our extensive IPO experience, across all industries, along with our experienced professionals, enables us to deliver insights that others may have missed. The practice is also home to Tech Venture Centers (TVC) in Waltham, MA and McLean, VA. The Centers are designed to create communities of leading service providers, addressing the needs of emerging, high-growth IPO bound companies and the venture capital community. For more information, please contact [email protected] or visit www.deloitte.com/us/egc.

As used in this document, "Deloitte" means Deloitte LLP and its subsidiaries.  Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries.  Certain services may not be available to attest clients under the rules and regulations of public accounting.

About NVCA
Venture capitalists are committed to funding America's most innovative entrepreneurs, working closely with them to transform breakthrough ideas into emerging growth companies that drive U.S. job creation and economic growth. As the voice of the U.S. venture capital community, the National Venture Capital Association empowers its members and the entrepreneurs they fund by advocating for policies that encourage innovation and reward long-term investment. As the venture community's preeminent trade association, NVCA serves as the definitive resource for venture capital data and unites its 400 plus members through a full range of professional services. For more information about the NVCA, please visit www.nvca.org.

Logo - http://photos.prnewswire.com/prnh/20120803/MM52028LOGO-a

SOURCE Deloitte

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, wh...
An IoT product’s log files speak volumes about what’s happening with your products in the field, pinpointing current and potential issues, and enabling you to predict failures and save millions of dollars in inventory. But until recently, no one knew how to listen. In his session at @ThingsExpo, Dan Gettens, Chief Research Officer at OnProcess, will discuss recent research by Massachusetts Institute of Technology and OnProcess Technology, where MIT created a new, breakthrough analytics model f...
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform and how we integrate our thinking to solve complicated problems. In his session at 19th Cloud Expo, Craig Sproule, CEO of Metavine, will demonstrate how to move beyond today's coding paradigm ...
Ask someone to architect an Internet of Things (IoT) solution and you are guaranteed to see a reference to the cloud. This would lead you to believe that IoT requires the cloud to exist. However, there are many IoT use cases where the cloud is not feasible or desirable. In his session at @ThingsExpo, Dave McCarthy, Director of Products at Bsquare Corporation, will discuss the strategies that exist to extend intelligence directly to IoT devices and sensors, freeing them from the constraints of ...
From wearable activity trackers to fantasy e-sports, data and technology are transforming the way athletes train for the game and fans engage with their teams. In his session at @ThingsExpo, will present key data findings from leading sports organizations San Francisco 49ers, Orlando Magic NBA team. By utilizing data analytics these sports orgs have recognized new revenue streams, doubled its fan base and streamlined costs at its stadiums. John Paul is the CEO and Founder of VenueNext. Prior ...
Technology vendors and analysts are eager to paint a rosy picture of how wonderful IoT is and why your deployment will be great with the use of their products and services. While it is easy to showcase successful IoT solutions, identifying IoT systems that missed the mark or failed can often provide more in the way of key lessons learned. In his session at @ThingsExpo, Peter Vanderminden, Principal Industry Analyst for IoT & Digital Supply Chain to Flatiron Strategies, will focus on how IoT de...
IoT offers a value of almost $4 trillion to the manufacturing industry through platforms that can improve margins, optimize operations & drive high performance work teams. By using IoT technologies as a foundation, manufacturing customers are integrating worker safety with manufacturing systems, driving deep collaboration and utilizing analytics to exponentially increased per-unit margins. However, as Benoit Lheureux, the VP for Research at Gartner points out, “IoT project implementers often ...
So, you bought into the current machine learning craze and went on to collect millions/billions of records from this promising new data source. Now, what do you do with them? Too often, the abundance of data quickly turns into an abundance of problems. How do you extract that "magic essence" from your data without falling into the common pitfalls? In her session at @ThingsExpo, Natalia Ponomareva, Software Engineer at Google, provided tips on how to be successful in large scale machine learning...
In his general session at 18th Cloud Expo, Lee Atchison, Principal Cloud Architect and Advocate at New Relic, discussed cloud as a ‘better data center’ and how it adds new capacity (faster) and improves application availability (redundancy). The cloud is a ‘Dynamic Tool for Dynamic Apps’ and resource allocation is an integral part of your application architecture, so use only the resources you need and allocate /de-allocate resources on the fly.
Information technology is an industry that has always experienced change, and the dramatic change sweeping across the industry today could not be truthfully described as the first time we've seen such widespread change impacting customer investments. However, the rate of the change, and the potential outcomes from today's digital transformation has the distinct potential to separate the industry into two camps: Organizations that see the change coming, embrace it, and successful leverage it; and...
SYS-CON Events announced today that Roundee / LinearHub will exhibit at the WebRTC Summit at @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. LinearHub provides Roundee Service, a smart platform for enterprise video conferencing with enhanced features such as automatic recording and transcription service. Slack users can integrate Roundee to their team via Slack’s App Directory, and '/roundee' command lets your video conference ...
Digital transformation is too big and important for our future success to not understand the rules that apply to it. The first three rules for winning in this age of hyper-digital transformation are: Advantages in speed, analytics and operational tempos must be captured by implementing an optimized information logistics system (OILS) Real-time operational tempos (IT, people and business processes) must be achieved Businesses that can "analyze data and act and with speed" will dominate those t...
The Jevons Paradox suggests that when technological advances increase efficiency of a resource, it results in an overall increase in consumption. Writing on the increased use of coal as a result of technological improvements, 19th-century economist William Stanley Jevons found that these improvements led to the development of new ways to utilize coal. In his session at 19th Cloud Expo, Mark Thiele, Chief Strategy Officer for Apcera, will compare the Jevons Paradox to modern-day enterprise IT, e...
There are several IoTs: the Industrial Internet, Consumer Wearables, Wearables and Healthcare, Supply Chains, and the movement toward Smart Grids, Cities, Regions, and Nations. There are competing communications standards every step of the way, a bewildering array of sensors and devices, and an entire world of competing data analytics platforms. To some this appears to be chaos. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, Bradley Holt, Developer Advocate a...
SYS-CON Events announced today that Bsquare has been named “Silver Sponsor” of SYS-CON's @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. For more than two decades, Bsquare has helped its customers extract business value from a broad array of physical assets by making them intelligent, connecting them, and using the data they generate to optimize business processes.
There is growing need for data-driven applications and the need for digital platforms to build these apps. In his session at 19th Cloud Expo, Muddu Sudhakar, VP and GM of Security & IoT at Splunk, will cover different PaaS solutions and Big Data platforms that are available to build applications. In addition, AI and machine learning are creating new requirements that developers need in the building of next-gen apps. The next-generation digital platforms have some of the past platform needs a...
SYS-CON Events announced today that ReadyTalk, a leading provider of online conferencing and webinar services, has been named Vendor Presentation Sponsor at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. ReadyTalk delivers audio and web conferencing services that inspire collaboration and enable the Future of Work for today’s increasingly digital and mobile workforce. By combining intuitive, innovative tec...
Fact is, enterprises have significant legacy voice infrastructure that’s costly to replace with pure IP solutions. How can we bring this analog infrastructure into our shiny new cloud applications? There are proven methods to bind both legacy voice applications and traditional PSTN audio into cloud-based applications and services at a carrier scale. Some of the most successful implementations leverage WebRTC, WebSockets, SIP and other open source technologies. In his session at @ThingsExpo, Da...
Cognitive Computing is becoming the foundation for a new generation of solutions that have the potential to transform business. Unlike traditional approaches to building solutions, a cognitive computing approach allows the data to help determine the way applications are designed. This contrasts with conventional software development that begins with defining logic based on the current way a business operates. In her session at 18th Cloud Expo, Judith S. Hurwitz, President and CEO of Hurwitz & ...
The Internet of Things can drive efficiency for airlines and airports. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Sudip Majumder, senior director of development at Oracle, will discuss the technical details of the connected airline baggage and related social media solutions. These IoT applications will enhance travelers' journey experience and drive efficiency for the airlines and the airports. The session will include a working demo and a technical d...