Israeli venture capitalists are cautiously optimistic about the domestic and global economy. 53% of venture capitalists in the Deloitte Brightman Almagor Zohar VC Indicator Survey for the second quarter of 2009 expect a recovery during the second half of the year, and none expect a further deterioration. The present results contrast with expectations over the previous 18 months, when a majority of venture capitalists expected the economy to deteriorate.
47% of venture capitalists in the present survey expect the economic situation to remain unchanged over the next six months. In comparison, in the previous five quarterly surveys, 70% of respondents, on average, expected the economic situation to worsen over the coming six month period.
A majority of venture capitalists believe that merger and acquisition activity will recover by early 2010. 20% of respondents predict a recovery by the end of this year, and 47% predict a recover early next year.
Deloitte Brightman partner and the Technology, Media & Telecommunication Industry Leader Asher Mechlovich said, "We're sensing a reawakening in the level of interest and in the number of transactions. The recent relative stability in the capital market also affects real economy activity and causes companies around the world to consider exploiting the window of opportunity for mergers and acquisitions."
Published by Globes [online], Israel business news - www.globes-online.com - on July 6, 2009
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