Venture capital has long been concentrated in California and Massachusetts. No news there. Many people, however, will cite improved efforts in recent years by Indiana private and public sector leaders to attract those VC dollars.
The 2009 Global Venture Capital Survey, though, indicates that job might become a little more difficult in coming years. Why?
- More than half of venture capitalists are now investing outside their home country
- Fifty-four percent of investors anticipate working with additional international partners in the next three years
- Asked where their dollars are most likely to go over those 36 months, the top answers were Asia, 50%; India, 43%; and South America, 36%. Only 17% forecast increased U.S. investment
There is still room for states to set themselves apart. Nearly 60% responded that government can play a key role by establishing favorable tax policies. Fifty percent noted that more support for entrepreneurial activity is also important.
On the other hand, maybe more international dollars will find their way here. Another very good reason for the U.S. to avoid protectionist policies that shut the door on international trade and investment.