Navasota Group; 2011 Private Investment Outlook

Top Quote The trade association asked more than 330 venture investors and 180 CEOs of venture-backed companies for their views on where the money will flow in 2011. End Quote
  • (1888PressRelease) March 24, 2011 - The outlook for venture-capital investment sounds similar to the prognostications for the rest of the global economy in 2011: better than 2010.

    However, the recent survey by the National Venture Capital Association reports that life sciences may no longer be ascendant.

    Attach your favorite reason for why that may be. The U.S. Food and Drug Administration is approving fewer new drugs than in the past. There is continuing uncertainty over how health-care reform will affect reimbursement for drugs and diagnostic tests. And quite frankly, the few life-sciences companies that did go public in 2010 saw their share prices sink.

    In the United States, 34 percent of the $17.7 billion invested went to life-sciences firms in 2009. However, the NVCA survey shows that investors are evenly split over whether investment in medical devices and biopharmaceuticals would increase, decrease, or remain the same in 2011.

    The trade association asked more than 330 venture investors and 180 CEOs of venture-backed companies for their views on where the money will flow in 2011.

    The clear winners were companies in the information-technology sector, specifically "consumer Internet and digital media." The frenzy associated with those sectors swirls around Silicon Valley and New York's Silicon Alley, primarily. And given a choice between those two geographic areas, Silicon Valley is expected to remain a money magnet, with venture capitalists preferring it by a more than 3-1 margin and CEOs by more than 2-1.

    More money would be great and so would more jobs. I always believe actions mean more than words, but it was encouraging to read that 82 percent of the CEOs surveyed predict headcount at their firms will increase in 2011, while only 3 percent expect to cut back.

    About Navasota Group

    Founded in 2003, Navasota Group specializes in; alternative energy, biotechnology, oil and gas technology, medical devices and instrumentation, imaging and diagnostics, nanotechnology firms, heavy industry technology, and mining operations. Navasota Group funds total more than $800 million. For more information, please visit www.navasotagroup.com.

    Media Contact

    Emily Miyamoto
    Navasota Media Coordinator
    press ( @ ) navasotagroup dot com

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