Free Trade and Venture Capital

Free Trade and VC funding can work together to help a region profit financially. Venture capitalists like Efraim Landa are looking for markets that are expanding and companies that are growing to meet the needs. These are the types of businesses a VC firm wants to invest in. Free Trade can be a compliment or a detriment to a region’s economy. Governments have a large role to play in the world of Free Trade and venture capitalists have to be careful to invest where they know there is going to be a return. Is it possible for Free Trade and VC firms to work together for the betterment of a region economically? Here are some things to think about.

The VC Market and Europe

The Euro is the backbone of the European market and Greece has discussed dropping it altogether. What would happen to the economy should Greece opt out of their financial markets? How would this influence the VC market? Greece has a favorable position in the European VC rankings and is performing better than most. Right now there is a good balance between taxes and investors both private equity and venture capitalists. The VC market has been thriving in the European financial environment and overall the market has been ripe for investors. The trends seem to point to favorable outcomes and many more opportunities for the venture capitalists to invest in the future. But if Greece pulls out, it could make for a rocky road in the EU.

The State of Venture Capital Markets in Europe

Venture Capital Markets in Europe

While the U.S. venture capital market is showing growth and promise this year, it should also be noted that the European market is at the highest its been in last four years. Venture capitalists are committing to more start-ups and offering more money than ever before. In fact, the increase isn’t just coming from within; even U.S. venture capitalists are increasing their spending on European start-ups. Both scenarios are helping to boost the economy.

Although roughly 3,000 start-ups throughout Europe receive funds from venture capitalists and that number is expected to rise this year at a slow and steady pace, the U.S. market is still significantly higher. Currently, it is Germany, France and the United Kingdom that are dominating the market. Combined, the three powerhouses make up for half of the venture capital deals made throughout all of Europe.

The State of the World Economy

World Economy

The global economy is essentially dependent on the growth of the U.S. It is a force in the world economy because for the first time in 10 years, the country. is experiencing a higher level of economic growth. America has basically been struggling since 2005, with high gas prices, high unemployment rates and consumer who were scared to part with their money. What may play out well for the U.S. is the fact that the country relies very little on exports, when compared to other countries. Yet many countries depend on the success of economic growth in the U.S.

The VC Market in Pakistan

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Venture capital funding is one way that a business can secure adequate funds to expand or develop the business. Efraim Landa has helped many businesses find success by offering them venture capital funding. A venture capitalist provides mentorship and monetary worth to a company which is in need of adding new departments, products or expanding in other ways. The venture capitalist makes a monetary investment in the company in exchange for equity. The VC firm helps the company grow and when it becomes profitable, the firm will make their money back through the company’s profits. This return is earned when the VC firm makes an “exit” from the business and sells all the shares that they held in the business.

The VC Market in Dubai

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It used to be that the VC market was considered to be more profitable in certain geographical locations. But today the venture capitalist like Efraim Landa can find a market almost anywhere in the world. It still holds true that some economic climates are much more conducive to profitability than others. Some governments have restrictions or regulations which make risk taking in the VC market less appealing than other regions. Entrepreneurs like Efraim Landa have an easier time selling their innovative ideas in some regions while it is still very difficult in many. But in almost every area of the world the idea of the venture capitalist is slowly catching on.

Venture Capital Market in Russia

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Efraim Landa understands the importance of keeping up with the global VC market. Each region around the world has its own political and economic climate as well as having unique characteristics which can directly influence the VC market. The Russian government created their own VC fund which could invest in nanotechnology based on informative experts who projected substantial returns. Many economists are against moves such as this while others think it can help build a better economic climate which can help stimulate the economy.

Venture Capital in China

 

China’s Flag

Effi Enterprises is a venture capitalist firm that strives to help emerging companies to 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.  Despite government structure providing obstacles to entrepreneurs and growing businesses in China, with innovation and advancements in technology, the Chinese economy has become impressive in size and the venture capital industry there has developed extensively. 

VC Market in Venezuela

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.

Venture Capital Market in Brazil

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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.