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Global Venture Capital Activity, 2010-2012

by Jonathan Parker

  • 17 May 2012
  • PE

Since the beginning of 2010, there have been more than 9000 PE-backed venture deals announced globally, valued at over $95bn. Of these, around 3700 deals were completed in 2010, with an aggregate value of $33.8bn. The following year saw just shy of 4000 deals, valued at $48.2bn in total, and the year so far has seen slightly less than 1600 deals, with an aggregate value of $13.6bn.

Across this period, North America has been the most prominent region for venture financings, accounting for 67% of the total number of deals announced globally in 2010, and 69% in 2011. The year so far has also seen 69% of deals attributed to companies based in North America. Seventy three percent of the global aggregate value was invested in North American companies in 2010. This proportion rose to 75% in 2011 and stands at 77% of the global aggregate value in 2012 thus far.

While North America’s supremacy in venture capital financing has strengthened, activity in Europe has waned somewhat. The region accounted for 13% of the global aggregate value of venture deals in 2010, but just 10% in 2011. The proportion of the total number of venture deals invested in Europe also fell in 2011 to 18% from 22% in the previous year. However, venture deals in Europe have made a slight recovery, and have accounted for 19% of the global number and 12% of the global aggregate value of venture deals announced in 2012 so far.

Of all regions, China has been the most fluctuant in terms of value, accounting for 9% of the global aggregate in 2010, 11% in 2011, and just 3% in the year so far. The proportion of the global total number of deals invested in the country has also fallen in 2012, from 5% in 2010 and 2011, to just 3% in the year so far, due to concerns over the lack of an exit market for Chinese investments. India, on the other hand, has seen not only an increase in the proportion of the global aggregate value of venture deals, from 3% in 2010 and 2011 to 4% in the year so far, but also in the proportion of the total number of deals. In 2010, this stood at 3%, but has since doubled to 6% of the global number in 2012, compared to 4% in 2011. Meanwhile Israel has remained relatively consistent, accounting for 1% of the global aggregate value of deals in each of the three years, along with 1% of the global number in 2010, 2% in 2011 and 1% in the year so far.

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