Page 10 - Special Issue Modern Trends in Scientific Research and Development, Case of Asia

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While VC funding of startups in Brazil, Russia, and several markets, there are substantial opportunities for Internet-
other emerging economies also rose during this period, the driven growth and productivity in other sectors as well. The
increase in investments outside of China and India was transformative potential of the Internet in Africa is
significantly more moderate. Chinese and Indian particularly large in education, health, agriculture,
entrepreneurial firms absorbed around 95% of all VC government, and retail (McKinsey, 2013). Although retail
investments in emerging markets in 2014–16. As a result, may attract the greatest interest from venture capitalists,
their economies are substantially more deeply penetrated other sectors may also benefit from an emerging VC industry
than their peers at a similar stage in their development in Africa.
process. In fact, Finland, Singapore, the United States, and
Israel, which are classified by the Global Competitiveness Below in figure 1 one can observe upward trend in the
Report (GCR) as innovation-driven economies, are the only number of deals on investments in emerging methods of
countries that are similarly deeply or even more deeply finance. In 2018, the total investments amounted 111 billion
penetrated than China and India. dollars, which is a great breakthrough relative to previous
years. As the world economy is on the way of digitalization,
The literature suggests a variety of factors that may help the number of venture capitalists, angel investors will
explain cross-country differences in VC investing. Lerner et probably rise in future because of increasing market demand
al. (2009) tested these hypotheses in a large cross section of for capital.
countries. Their results were consistent with the arguments
of Black and Gilson (1998) and the findings of Jeng and Wells References
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