VCs prefer healthcare to IT
Software sector still attractive though
Venture capitalists are forking out less and less dosh to back communications and networking investments.
So says a survey by Ernst & Young/VentureOne which found that venture investment in Europe was flat in Q2 at €709 million ($791 million).
Although there was a "sharp decline" in comms and networking investment, the survey found that software and healthcare sectors did hold their own.
And while optimists believe that the European VC market could begin to expand again in the second half of the year, some experts predict that investment in healthcare could overshadow the IT sector (with the exception of software).
Said Dave Cabral of Ernst & Young in a statement: "The fact that we can see such a clear correlation in industry trends, even in a quarter when US investment rose significantly and European investment was flat, points to the truly global nature of venture capital.
"Investors share similar views when it comes to the potential of the healthcare and software industries, and that potential stems from the shared problems society is looking to solve today," he said. ®