38% of venture capitalists expect smaller exits in the next six months, according to the third quarter 2011 VC Indicator survey by Deloitte Brightman Almagor Zohar. No venture capitalist expects exits to increase in company values, compared with 38% in the previous survey.
Half of the respondents expect Israeli investment institutions to reduce investment in venture capital, compared with 13% who expect them to increase investment.
Half of Israel's venture capitalists expect the global economic situation to worsen over the next six months, up from 40% in the survey for the second quarter. 8% of venture capitalists in the present survey expect the global economic situation to improve.
"This is discouraging news for the entire industry, especially for venture capital firms currently raising new funds," said Deloitte Brightman Almagor partner Tal Chen. "Against this background, we expect funds to make greater efforts to raise capital from foreign investment institutions."
73% of venture capitalists believe that most M&A deals in the next six months will be of Internet companies, 50% expect M&As of software developers, and 32% expect M&As of life sciences companies.
Published by Globes [online], Israel business news - www.globes-online.com - on October 30, 2011
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