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More institutional investors are interested in venture capital in Asia, than any other region, says a new report from London-based <a style="color: #000080;" href="http://www.dealstreetasia.com/tag/preqin/" target="_blank">Preqin</a>, which surveyed 143 venture capital fund managers.</article>

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More institutional investors are interested in venture capital in Asia, than any other region, says a new report from London-based <a style="color: #000080;" href="http://www.dealstreetasia.com/tag/preqin/" target="_blank">Preqin</a>, which surveyed 143 venture capital fund managers.
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Sixty two per cent of firms polled stated that they were seeing greater appetite for venture capital from investors in the region compared with a year ago, well above the proportion of investors in other regions.
In contrast, 18 per cent of respondents said that investor appetite for venture capital has decreased from investors located in North America, the largest market for the asset class.
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Investors from emerging markets of sub-Saharan Africa and Latin America are also showing more interest in venture capital funds.
Good news for startups is that 23 per cent of venture capital fund managers currently have a fund on the road, while a further 43 per cent plan to bring a new fund to market in the next 12 months. That will lead to higher deal activity in the region.
Majority of fund managers said that they include social impact considerations for atleast some of their prospective investments. Others said that currently they don&#8217;t but suggested that might change in the future.
The largest proportion of managers (42 per cent) said that the level of competition for deals was similar to last year. However,  about 40 per cent said they have faced increased competition for deal exposure in the past year.
&#8220;Although managers are concerned about the exit environment and the rising price of company valuations, a large proportion are either currently raising new funds, or intend to within the next year. This could lead to increases in dry powder and the total AUM of the asset class, if managers are not able to exit their investments at the same rate as they accrue fresh capital. Given that the venture capital industry has seen rapid increases in activity in Asia over recent years, it may be that managers active in the region will need to look beyond the traditional strongholds of Greater China and India in order to find attractive investment opportunities,&#8221; said Felice Egidio, Head of Venture Capital Products, Preqin.
As new venture capital funds continue to come to market, the majority of managers have seen an increase in competition for investor capital. 20 per cent of respondents said there is significantly more competition than 12 months ago.
Fund managers view the exit environment as the biggest challenge facing the venture capital industry over the next 12 months. Other challenges are fundraising, followed by volatility and uncertainty in global markets.
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More institutional investors are interested in venture capital in Asia, than any other region, says a new report from London-based Preqin.

Asian investors are most interested in venture capital deals, says Preqin report

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Asian investors are most interested in venture capital deals, says Preqin report

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