Venture investment: international trends of business acceleration
Investments is the main resource for supporting startups. The accelerator skillfully directs cash resources to the development of ideas, so projects are growing at an accelerated pace. The startup is a mechanism that needs investment "fuel" for function and advancement. One of the main reasons why the acceleration market in the West is growing rapidly is the huge number of funds and business angels.

Business acceleration is a global trend of accelerated development of ideas and projects through training, mentoring, expert and investment support. The accelerator creates a special environment where the startup with minimal costs and time costs gets the fastest possible result. It is helps to quickly test hypotheses, test ideas for marketability and make decision on the feasibility of developing the business project.

The accelerator not only teaches startups how to grow multiple times, but also builds high-quality communication between the team, investors and experts, where everyone communicates in the same language and understands what results to expect from such an interaction without speculation and pink glasses.

One of the main tasks of the accelerator is implementation of investments or create your own investment fund. Active demand for highly profitable projects stimulates the development of the acceleration market, which attracts more startups, many of which are becoming capitalized businesses. Such a cycle flow of investments and ideas inside the accelerator allows investors to increase their activity, and business accelerators - skillfully harness money, not only increasing capitalization, but also acting as the engine of the country's innovative progress. For an understand how exactly invest in different countries, it is worth taking a look at the venture ecosystem on average.

Most of western accelerators receive support from individuals and companies. For the Western investor, an accelerator is a convenient tool for tracking the progress of a project in its early stages. High competition among "hunters" for promising startups makes the race participants buy a stake in the company when the business is still in its infancy.

The USA and North America are the hottest technology markets in the world. There are more than one and a half thousand venture funds here: there are institutions focused specifically on seed rounds and series A. This is Benchmark, First Round Capital. Separately, it should be noted the famous accelerators (Y Combinator, 500 Startups), at the level of which there are associations of business angels and angel funds. "The ecosystem itself is perhaps the most active in the world. There is more capital in the US market than in other regions. At each stage, there are dozens, if not hundreds, of funds competing for promising deals. For this reason, project evaluation is usually higher. Even a company that does not yet have a finished product can cost $ 15–20 million due to a "star" team and a promising idea. Due to the liveliness, the market is faster.

Europe. The main difference between the European market and the American one is that there are almost no participants in this market who invest volumes of $ 100-500 million or more. Most well-known funds work with an average check of $ 10–20 million and a focus on series A round. A lot of successful seed funds. A characteristic feature of the European venture capital market is the wider distribution of private clubs for investors, who usually work on the basis of venture capital funds. Most of these clubs are in Switzerland, Germany and Italy. The European venture capital market is less developed than the American one. The absence of large checks ($ 50-100 million) limits the market. Due to the specifics of the market, projects that are able to quickly scale to the whole world are looking for funding in the United States. The situation is gradually changing, funds are also appearing in Europe, ready to invest very large sums and close deals comparable in scale to American ones.
Asia is a relatively new market: according to Blue Future Partners, 162 funds are active in the region. According to forecasts, the Internet population, from 260 million in 2016, will grow to 480 million users by 2020. The digital economy market will increase from $ 30 billion in 2016 to $ 200 billion in 2025. Given such an active development and growth prospects, international funds "enter" the region and local venture capitalists appear. Among the players who have come from the global arena or working across Asia are Sequoia, WI Harper Group, IDG Capital.

A characteristic feature of the Asian venture capital market is the active participation of the state. For example, there are GIC Private Limited and Temasek Holdings, founded by the Singapore government, the Chinese Innovation Fund For Technology-Based Firms. Another feature is the active participation of corporate funds: for example, from Alibaba, Tencent, Softbank. In Europe and the USA, corporate venture is much less active. The Asian startup and venture capital market is growing rapidly. At the beginning of the year, the Financial Times reported that the local venture capital market almost equaled the US market in volume ($ 70.8 billion versus $ 71.9 billion) in the near future and soon will overtake him.

Maryna Pavlovskaya

The Expert of EX1P
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