A recent Preqin blog looked at the performance of venture capital funds and noted that such vehicles have struggled in recent years, particularly as the effects of the financial crisis have become more apparent. Preqin’s Investor Intelligence database shows that nearly 260 previous investors in venture funds have since taken the decision to discontinue committing to the private equity asset class as a whole. More than 2,100 private equity investors that remain active, however, have either invested in venture capital funds in the past or list venture capital funds as an investment preference.
Almost half of these investors are based in North America, while approximately 32% are based in Europe and 19% are based in other regions. The state of New York represents the largest base for North American institutional investors committing to venture capital, with approximately 14% of North American investors based there. This is slightly ahead of California, which is home to 12% of the region’s venture fund investors, while Massachusetts, Pennsylvania and Illinois provide 8%, 6% and 5% of North American investors respectively. Investors based in Canada represent nearly 6% of North American private equity investors with an interest in venture capital funds.
In Europe, the UK is the primary location for private equity investors indicating a preference for venture capital funds, with approximately 27% of the region’s venture fund investors based in the country. Germany plays host to almost 12%, while Switzerland and France are home to 10% and 9% respectively. Of the venture fund investors based outside of North America and Europe, approximately 16% are based in Japan, 15% are located in Australia and 9% are based in India.
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