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Laxman Pai, Opalesque Asia: Global private equity (PE) and venture capital (VC) fundraising will likely decline this year, mainly due to concerns about macroeconomic factors such as supply-chain constraints, inflation, and the war in Ukraine, said a study.
Most respondents (55%) expect fundraising to decline in 2023, far more than 6% in 2022, according to the survey by Acuity Knowledge Partners.
The proportion of respondents who are unsure whether they will raise new funds increased by 50%, to 30% in 2023 from 20% in 2022. As investing confidence deteriorates, the number of professionals who believe investment opportunities are increasing has declined substantially, to 41% from 67%, said the study.
Respondents from firms across North America, EMEA, and Asia Pacific offered insight on investment opportunities, concerns, and their business outlook for 2023 amid the current turbulent economic environment.
Developments in the tech space, such as the stock-market collapse, increased layoffs, and the downfall of crypto investing, have made VC firms wary. This is likely driving preferences for non-tech sectors, with respondents indicating an increase in interest in financial services, retail, and manufacturing. These sectors are also attracting tech-driven transformation, but they are not entirely tech-dependent and have pent-up demand during the pandemic.
As the world recovers from the pandemic, the tech areas favored amid the lockdowns are declining and those tha...................... To view our full article Click here
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