Monthly Archives: April 2013

VC Market in Mexico

VC Market in Mexico

Mexico Flag

As a venture capital firm, Effi Enterprises helps emerging businesses develop a business plan that will take them from an early-state startup up to a thriving public company in under ten years.  They invest large sums of money in exchange for equity in the company, providing that business the opportunity to experience extreme growth.  As a competitive emerging economy with great potential in its VC industry, Mexico has the growth venture capital firms look for to invest.  As an entrepreneur himself, Efraim Landa, the founder of Effi Enterprises, recognizes the strength of the innovative Mexican entrepreneurs that just require funding from venture capital firms to propel their business into exponential growth. Read the rest of this entry

Advertisements

VC Market in Argentina

Argentina VC Market

Argentina Flag

Venture capital firms such as Effi Enterprises seek out companies with significant potential for growth.  These early-stage companies have extreme potential for improvement, but assistance from a firm like Effi Enterprises is all they lack.  In exchange for equity in the company, venture capital firms will invest large amounts of financial capital into the startup to give it the boost necessary to become successful.  They are always watching the global market to find emerging enterprises and provide those businesses with the funding they need to succeed.  With a developing economy and strong technology and software industries, Argentina is a place of potential and venture capital firms around the world are noticing. Read the rest of this entry

VC Market in Venezuela

Venezuela VC Market

Venezuela Flag

When entrepreneurs have innovative ideas for starting a company, they seek funding to transform their vision a reality.  Venture capital firms like Effi Enterprises are here to support that entrepreneur in finding the necessary funding to create a successful enterprise. Venture capital firms are always watching the global markets, looking for emerging markets with extreme potential for investment opportunities.  Venezuela’s market has potential for growth, but has limited exposure to use of venture capital funding.  As it is not available for VC investment at the present moment, it is a place VC firms should continue to monitor for opportunity in the future.

History of Venture Capital in Venezuela

There has been a strong history of foreign investments in Venezuela’s oil industry.  After increasing political and economic instability, the overall investment climate in Venezuela began to decline in 2007.  Most companies decided to keep their investments in Venezuela in hopes that the situation would improve.  Strict labor and environment laws have increased the costs of exiting the Venezuelan market. Read the rest of this entry

Venture Capital Market in Brazil

Brazil VC Market

Brazil Flag

When entrepreneurs have innovative ideas for starting a company, they seek funding to transform their vision a reality.  Venture capital firms like Effi Enterprises are here to support that entrepreneur in finding the necessary funding to create a successful enterprise.  They have the expertise and experience needed to propel an early-stage business into a public company in ten years or less.  Venture capital firms are always watching the global markets, looking for emerging markets with extreme potential for investment opportunities.  With one of the world’s largest economies and a venture capital market that is finally beginning to advance considerably, Brazil is a place with potential for venture capital firms all over the world.

History of VC Market in Brazil

Activity in the venture capital market in Brazil began in the 1980s, but the high interest rates and the high rate of inflation discouraged venture capital endeavors, especially from international investors.  In the 1990s, the situation began to improve as the Brazilian government introduced the Real Plan with the aim of reducing this inflation and lowering interest rates.  There was also a rise in the privatization of public enterprises.  In 2000, the Brazilian Venture Capital and Private Equity Association was created allowing for real growth in the venture capital industry there.  Throughout Brazil’s recent history, foreign venture capital firms have not had a strong presence in the market, but in recent years the business environment has become more and more conducive to entrepreneurs and profitable investment opportunity and international involvement from venture capital firms is on the rise.

Current State of VC Market in Brazil

The current state of the venture capital market in Brazil is encouraging for international VC firms as the environment there becomes more open to opportunity for emerging business enterprises to excel.  In 2004, there was $6 billion raised from venture capital investors and by 2008, there was $28 billion, making it the second most attractive choice for private equity investments in 2009.  With abundant natural resources, stable government policies, and an advanced banking sector, the economy is among one of the largest in the world.  Brazil has a financial system that has largely escaped the global financial crisis and a legal system that respects property rights. High-tech industries such as aerospace, agribusiness, energy, information technology, and telecommunications are being developed.  There are more than 1.7 million IT professionals and a new IBM research center.  The government is strongly supporting investments in innovative programs in these primary industries and claims that today, 15 out of every 100 residents are involved in a startup.  The potential growth and business endeavors are there and now just need the support of the international venture capital community to really thrive.

Future of VC Market in Brazil

With a history of slow growth in the venture capital industry of Brazil, the focus is now on the future.  In the past, regulations and high inflations have made the venture capital market there unappealing to outside investors, but slowly that is all changing and advancement is happening.  With the upcoming hosting of the 2014 World Cup and the 2016 Summer Olympics, development is rampant throughout Brazil and opportunities for investors to get involved will grow exponentially.  There may be a few challenges to overcome, but the potential for success is high and the environment gets riper each year. Venture capital firms are constantly looking for international opportunities for investment and with a recent influx of young companies and a stable, growing economy, the Brazilian venture capital market is now a place of interest for VC firms all around the world.

VC Market in the United States

US and economics

US Flag

Effi Enterprises is a venture capitalist firm that strives to help emerging companies secure the funding they need to prosper.  In providing excellent managerial expertise and leadership assistance, Effi Enterprises hopes to guide these emerging businesses to exponential growth.  Innovative businesses and technologically advanced companies like the ones Effi Enterprises supports are what contribute to the growth of the global economy.

History of VC Market in the United States

Although the United States has a strong history of business innovation and entrepreneurship, the first modern venture capital firm, American Research and Development, was founded in 1946 with the intent of financing commercial applications of the technologies that were developed during the World War II time period.  As the venture capital industry began to grow in the 1950s, the Federal government encouraged new small business investment companies (SBICs), which provided early stage funding for businesses in all industries.  The SBICs began growing rapidly and the by the 1960s, there were 700.  After a period of financial obstacles and downturn in the initial public offering (IPO) market activity, the West Coast venture capital boomed and the money flowing into the venture capital industry increased dramatically in the 1980s and continued to be an integral part of the expansion of small businesses in America contributing to the growth of the American economy.  The United States VC market has seen extensive growth over the years. In 1970, there were 93 venture-back deals recorded raising $.10 billion and by 2000, there were 6,420 deals raising $99.2 billion. Read the rest of this entry

Venture Capital Market in Canada

VC and Canada

Canada Flag

As a Venture Capital Firm, Effi Enterprises monitors the global economy, watching for countries that are prime for investment opportunity.  With recently noted boosts in their investment activity and solid plans for supporting the growth of their domestic venture capital industry, Canada has become a place of interest for investors across the globe.

State of Venture Capital in Canada

In 2012, investment activity in Canada’s venture capital market reached $1.5 billion in new venture capital investment and $1.8 billion in new capital formation for domestic venture capital funds.  These levels match the activity in 2011, which was the highest for investment activity in five years.  The information technology (IT) sector received $719 million of this investment while $224 million was invested in the non-technology sector and $368 million biotechnology, life sciences, and medtech.  The clean technology sector’s investments reached $144 million.   Ontario received the highest amount of investment activity in Canada’s VC market with Quebec following in second.  Canadian innovate firms captured 44% of the venture capital invested in American firms.

From the encouraging results in the past year, it is clear that Canada has potential as a leader in innovation in the global economy.  There were six Canadian deals amongst the top thirty largest venture capital deals done in North America.  These included Desire2Learn, Engineered Power, Thrasos Innovation, D-Wave Systems, Lightspeed Retail Inc. and Securekey Technologies Inc.  Canada’s domestic venture capital market is strong and with 33 domestic VC funds receiving $1.8 billion in new commitments in 2012, evidence suggests it will stay that way.  New commitment investments up 73% from 2011, this was the highest level of new capital formation in ten years.

Canadian technology companies have attracted interest from the global venture capital community mostly due to the Scientific Research and Experimental Development Tax Incentive Program, which provides tax credits or refunds to corporations or individuals who conduct scientific research or experimental development in Canada.

Canada has a unique form of venture capital generation in its Labor Sponsored Venture Capital Corporations (LSVCC).  Also known as Retail Venture Capital or Labor Sponsored Investment Funds (LSIF), these funds offer tax breaks to encourage retail investors to purchase them.  These Retail Venture Capital funds generally only invest in companies where the majority of employees are in Canada.

Future of Canadian VC

While 2012 was a boost in Canada’s venture capital industry, it has faced challenges in reluctance from institutional investors such as banks and pension funds to invest in early-stage firms, a shortage of experienced fund managers to lead successful venture capital funds, and relatively small size of venture funds in Canada.  Long-term sustainable capital remains a concern.  To address this issue and support the growth of this crucial industry, the Government of Canada is giving $400 million to help increase private sector investments in early-stage risk capital and to support the creation of large-scale venture capital funds led by the private sector.  The newly announced Venture Capital Action Plan will assist in the distribution of this $400 million.  The new federal Venture Capital Action Plan will hopefully allow the positive momentum to continue and bring in more corporate and institutional investor commitments to Canadian venture capital partnerships.  This plan is an opportunity to support Canada’s high-potential firms with the resources they need and lead Canada’s venture capital industry towards sustainability.

Venture Capital Around the World

 

World

Globe

Effi Enterprises is a venture capital firm that seeks out emerging, early-stage businesses that lack the funding necessary to succeed.  In exchange for equity in the company, Effi Enterprises provides that funding, along with managerial and business strategy assistance to help guide these small businesses to success and helps them become public companies in ten years or less.  Venture capital firms are always watching the global markets, looking for emerging markets with extreme potential for investment opportunities.  As the venture capital industry has expanded all across the globe, Effi Enterprises has become increasingly involved in global investments.

History of Venture Capital Around the World

Traditionally, entrepreneurs with innovative business ideas sought out wealthy individuals or friends and family to collect enough capital to make that business a reality.  In 1946, a formal venture capital institution was formed in the United States called the American Research and Development Corporation with the aim of supporting private sector investments in businesses.  AR&D invested in the Digital Equipment Corporation and their $70,000 1959 investment was worth $37 million by 1968.  Steps were taken towards the professionally managed venture capital industry with the Small Business Act of 1958 where the U.S. Small Business Administration was allowed to license private small business investment companies to support the financing and management of small entrepreneurial companies in the United States.  Since this time, the venture capital industry has expanded exponentially throughout North America and Europe and is now experiencing growth in emerging markets in the Middle East, Latin America, Asia, and all over the world. Read the rest of this entry