|By PR Newswire||
|August 13, 2014 08:00 AM EDT||
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.
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.
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.
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo in Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal an...
May. 24, 2015 03:00 PM EDT Reads: 2,793
All major researchers estimate there will be tens of billions devices - computers, smartphones, tablets, and sensors - connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades. With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo, June 9-11, 2015, at the Javits Center in New York City. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be
May. 24, 2015 12:15 PM EDT Reads: 2,246
Container frameworks, such as Docker, provide a variety of benefits, including density of deployment across infrastructure, convenience for application developers to push updates with low operational hand-holding, and a fairly well-defined deployment workflow that can be orchestrated. Container frameworks also enable a DevOps approach to application development by cleanly separating concerns between operations and development teams. But running multi-container, multi-server apps with containers is very hard. You have to learn five new and different technologies and best practices (libswarm, sy...
May. 24, 2015 12:00 PM EDT Reads: 2,166
SYS-CON Events announced today that DragonGlass, an enterprise search platform, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. After eleven years of designing and building custom applications, OpenCrowd has launched DragonGlass, a cloud-based platform that enables the development of search-based applications. These are a new breed of applications that utilize a search index as their backbone for data retrieval. They can easily adapt to new data sets and provide access to both structured and unstruc...
May. 24, 2015 12:00 PM EDT Reads: 1,971
As the Internet of Things unfolds, mobile and wearable devices are blurring the line between physical and digital, integrating ever more closely with our interests, our routines, our daily lives. Contextual computing and smart, sensor-equipped spaces bring the potential to walk through a world that recognizes us and responds accordingly. We become continuous transmitters and receivers of data. In his session at @ThingsExpo, Andrew Bolwell, Director of Innovation for HP's Printing and Personal Systems Group, discussed how key attributes of mobile technology – touch input, sensors, social, and ...
May. 24, 2015 11:30 AM EDT Reads: 3,992
WebRTC defines no default signaling protocol, causing fragmentation between WebRTC silos. SIP and XMPP provide possibilities, but come with considerable complexity and are not designed for use in a web environment. In his session at @ThingsExpo, Matthew Hodgson, technical co-founder of the Matrix.org, discussed how Matrix is a new non-profit Open Source Project that defines both a new HTTP-based standard for VoIP & IM signaling and provides reference implementations.
May. 24, 2015 10:30 AM EDT Reads: 5,299
SYS-CON Events announced today that the "First Containers & Microservices Conference" will take place June 9-11, 2015, at the Javits Center in New York City. The “Second Containers & Microservices Conference” will take place November 3-5, 2015, at Santa Clara Convention Center, Santa Clara, CA. Containers and microservices have become topics of intense interest throughout the cloud developer and enterprise IT communities.
May. 24, 2015 10:00 AM EDT Reads: 2,256
Buzzword alert: Microservices and IoT at a DevOps conference? What could possibly go wrong? In this Power Panel at DevOps Summit, moderated by Jason Bloomberg, the leading expert on architecting agility for the enterprise and president of Intellyx, panelists will peel away the buzz and discuss the important architectural principles behind implementing IoT solutions for the enterprise. As remote IoT devices and sensors become increasingly intelligent, they become part of our distributed cloud environment, and we must architect and code accordingly. At the very least, you'll have no problem fil...
May. 24, 2015 10:00 AM EDT Reads: 1,999
Almost everyone sees the potential of Internet of Things but how can businesses truly unlock that potential. The key will be in the ability to discover business insight in the midst of an ocean of Big Data generated from billions of embedded devices via Systems of Discover. Businesses will also need to ensure that they can sustain that insight by leveraging the cloud for global reach, scale and elasticity.
May. 24, 2015 09:30 AM EDT Reads: 6,786
The 4th International Internet of @ThingsExpo, co-located with the 17th International Cloud Expo - to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA - announces that its Call for Papers is open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
May. 24, 2015 09:00 AM EDT Reads: 1,810
"People are a lot more knowledgeable about APIs now. There are two types of people who work with APIs - IT people who want to use APIs for something internal and the product managers who want to do something outside APIs for people to connect to them," explained Roberto Medrano, Executive Vice President at SOA Software, in this SYS-CON.tv interview at Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
May. 24, 2015 08:30 AM EDT Reads: 4,335
The 17th International Cloud Expo has announced that its Call for Papers is open. 17th International Cloud Expo, to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, APM, APIs, Microservices, Security, Big Data, Internet of Things, DevOps and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal today!
May. 24, 2015 08:00 AM EDT Reads: 4,421
In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect at GE, and Ibrahim Gokcen, who leads GE's advanced IoT analytics, focused on the Internet of Things / Industrial Internet and how to make it operational for business end-users. Learn about the challenges posed by machine and sensor data and how to marry it with enterprise data. They also discussed the tips and tricks to provide the Industrial Internet as an end-user consumable service using Big Data Analytics and Industrial Cloud.
May. 24, 2015 06:30 AM EDT Reads: 5,588
17th Cloud Expo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterprises are using some form of XaaS – software, platform, and infrastructure as a service.
May. 24, 2015 05:00 AM EDT Reads: 2,509
Sensor-enabled things are becoming more commonplace, precursors to a larger and more complex framework that most consider the ultimate promise of the IoT: things connecting, interacting, sharing, storing, and over time perhaps learning and predicting based on habits, behaviors, location, preferences, purchases and more. In his session at @ThingsExpo, Tom Wesselman, Director of Communications Ecosystem Architecture at Plantronics, will examine the still nascent IoT as it is coalescing, including what it is today, what it might ultimately be, the role of wearable tech, and technology gaps stil...
May. 24, 2015 05:00 AM EDT Reads: 4,491
The explosion of connected devices / sensors is creating an ever-expanding set of new and valuable data. In parallel the emerging capability of Big Data technologies to store, access, analyze, and react to this data is producing changes in business models under the umbrella of the Internet of Things (IoT). In particular within the Insurance industry, IoT appears positioned to enable deep changes by altering relationships between insurers, distributors, and the insured. In his session at @ThingsExpo, Michael Sick, a Senior Manager and Big Data Architect within Ernst and Young's Financial Servi...
May. 24, 2015 05:00 AM EDT Reads: 4,964
The Workspace-as-a-Service (WaaS) market will grow to $6.4B by 2018. In his session at 16th Cloud Expo, Seth Bostock, CEO of IndependenceIT, will begin by walking the audience through the evolution of Workspace as-a-Service, where it is now vs. where it going. To look beyond the desktop we must understand exactly what WaaS is, who the users are, and where it is going in the future. IT departments, ISVs and service providers must look to workflow and automation capabilities to adapt to growing demand and the rapidly changing workspace model.
May. 24, 2015 04:30 AM EDT Reads: 3,259
Since 2008 and for the first time in history, more than half of humans live in urban areas, urging cities to become “smart.” Today, cities can leverage the wide availability of smartphones combined with new technologies such as Beacons or NFC to connect their urban furniture and environment to create citizen-first services that improve transportation, way-finding and information delivery. In her session at @ThingsExpo, Laetitia Gazel-Anthoine, CEO of Connecthings, will focus on successful use cases.
May. 24, 2015 04:00 AM EDT Reads: 5,068
One of the biggest impacts of the Internet of Things is and will continue to be on data; specifically data volume, management and usage. Companies are scrambling to adapt to this new and unpredictable data reality with legacy infrastructure that cannot handle the speed and volume of data. In his session at @ThingsExpo, Don DeLoach, CEO and president of Infobright, will discuss how companies need to rethink their data infrastructure to participate in the IoT, including: Data storage: Understanding the kinds of data: structured, unstructured, big/small? Analytics: What kinds and how responsiv...
May. 24, 2015 04:00 AM EDT Reads: 4,575
Building low-cost wearable devices can enhance the quality of our lives. In his session at Internet of @ThingsExpo, Sai Yamanoor, Embedded Software Engineer at Altschool, provided an example of putting together a small keychain within a $50 budget that educates the user about the air quality in their surroundings. He also provided examples such as building a wearable device that provides transit or recreational information. He then reviewed the resources available to build wearable devices at home including open source hardware, the raw materials required and the options available to power s...
May. 24, 2015 03:30 AM EDT Reads: 4,087