US venture investment abroad

The present paper focuses on the trend towards worldwide activity of the US venture capital firms. This trend is important not only in providing new opportunities for venture firms, but also for the innovation of local economies. The study of this issue implies the analysis of the main factors inducing global activity (experience of entrepreneurial activity, regulations, the emergence of new hubs for venture capital as China and India) and also special features of geographic distribution of the US venture investment. This scientific research is based on publications of foreign researchers, statistical information of leading international analytical companies and legal instruments. Venture industry is an important driver of the US economy, increase the level of innovation, promote employment and generate revenue. But the trend to a larger average deal size and a declining in deal count leads to strong competition and pushing to enter the foreign markets. The top countries receiving US venture investment are China, India, Canada, Israel and Great Britain. Developing countries represent a huge potential market and investment in business to consumer electronic commerce account for more than half of venture financing here. At the same time the business models employed by US venture firms in these countries are more akin to franchises. Canada's proximity and stability, Israel and Great Britain’s skilled talent base and deep expertise in modern technology are also appealing factors to the US venture firms. A special attention is paid to investment in such sectors as financial technology, healthcare, cybersecurity and artificial intelligence. Investing in these countries, the US firms also benefit from the opportunities to diversify their portfolio, to complement their existing capabilities with new knowledge and get growing returns

Keywords: US venture capital firm, experience of entrepreneurial activity, investment, new technology, large market, global activity, growing returns


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