Global uncertainties dampen keenness in VC investment

Venture capital (VC) investments have continued to tick down in value, according to the latest edition of the Venture Capital Pulse series by KPMG and market research analyst CB Insights, a report which explores the global VC investment market. Global political uncertainties, including the US presidential election and Brexit, as well as economic conditions, from expected rates hikes in the US and slowing BRICS economies, have dampened investors’ keenness on what are increasingly seen as risky investments. Investment activity may be revitalised once global uncertainties resolve and more certainty around valuations are achieved. North America continues to suffer from fleeting VC investor confidence. Investors, particularly in the US, remain spooked by valuations of companies not lining up with their exit potential, as well as wider concerns about the presidential election fallout. Unicorn production has continued to be lacklustre, with Europe generating no unicorns over the past quarter (it has around 50 unicorns), while Asia and the US managed four apiece, the study added.