PRINT THIS PAGE Venture capital investment on pace to reach highest annual total since 200107/12/2007. Source: AltAssets. 
Global venture capital investment is expected to top $40bn at the close of the fourth quarter, according to a global year-end analysis by Dow Jones VentureOne and Ernst & Young. This would be the highest annual total since 2001. During the first three quarters of the year, venture capital investment in the US, Europe, China and Israel exceeded $30bn. In comparison, the 2001 annual total reached over $55bn.
Gil Forer, global director of Ernst & Young's Venture Capital Advisory Group, said, 'The new global surge in venture capital investments, particularly in cleantech and healthcare companies, has been driven by a number of factors.
'First, there is heightened demand for innovative technologies in energy efficiency and medical technology around the globe in both mature and emerging markets. The healthy exit environment, both for IPOs and for mergers and acquisitions, is spurring investment in a number of areas. In addition, today's venture-backed companies need to establish competitive, global operations quickly and thus require more financing capital. Finally, innovation is the new currency of competition and venture capitalists are responding to the demand for external innovation from an increasing number of large corporations that have concluded they must look for innovation beyond their in-house research and development functions to win in their markets,' Forer continued.
The major story of the year may be the growing deal sizes seen around the world, according to the report. The median deal size surpassed a record $6m for the first time in Israel and China. In Europe, the median stands at a record $3.95m. The US venture industry saw its deal median reach $7.55m, its highest level since the $8m record set in 2000.
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