SSTI, a national organization focused on technology-based economies, cites a report from Ernst & Young that predicts a new phase in the evolution of the global venture capital industry.
Ernst & Young's report, called "Transition," points to numerous factors that are driving the globalization of venture funds and their portfolio companies. The most significant factors include:
* Global consumer markets
* Increased international competition
* Investment opportunities in emerging markets
* Higher cost of building a company in mature markets
* Advancements in technology
Gil Forer, Global Director of Ernst & Young's Venture Capital Advisory Group, says in the report: "Private, venture-backed companies must increasingly act like multinationals earlier in their life cycles, taking advantage of the new global ecosystem that matches the increased demand for innovation with an international supply of talent, technologies, business models and capital."
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