The Venture Capital and Private Equity Country Attractiveness Index 2013 – Singapore secures 5th position
The Venture Capital (VC) and Private Equity (PE) Country Attractiveness Index (VCPE), is a comprehensive study of a country’s attractiveness for investors in VCPE limited partnerships. The research project was started in Barcelona in 2006 with a pilot study (European), which is now extended to a global study. The research study is inclusive 118 countries and is comprised of 200,000 individual data record.
VCPE investors have a common and basic intension of doing transactions where risk and return ratio is satisfactory. They have a global approach to fulfill their goals and often look for un-traded emerging nations. To invest judiciously, there are certain key factors that investors look for. For example: a country’s economic activities such as inflation rate, unemployment rate, GDP, capital market size and liquidity, protection provided to investors, taxation rates, socio-human environment such as crime rate, and policies for labor market. Some of the other factors are the opportunities and culture of entrepreneurship such as capacity of innovation, ease of doing business, high tech industry development.
Singapore, has secured 5th rank in the VCPE index of year 2013. As per the research results the GDP is US$271.1 billions, the GDP growth % is 1.8. Singapore is ahead of its peer group with HongKong, South Korea, Malaysia, Taiwan, and china are on 8th, 15th, 17th, 18th, and 24th rank respectively. The investors opt to open company in Singapore because it is 1st in the World Bank’s list of places that offer ease of doing business. According to the VCPE index report, Singapore’s Human and Social Environment ranking is number 1, Investor Protection and Corporate Governance is number 2, Entrepreneurial Culture and Deal Opportunities is number 11. Overall, Singapore provides all the favorable conditions to the investors around the globe to consider this nation to take capital risks. Additionally, Singapore is ahead of some other factors as well such as the geographical position which makes it easily accessible from anywhere in the world, stable political system, high living standards to count a few.
The VCPE is an authentic source of information not only for the investors who use the genuine information judiciously but also to the politicians of the nations to utilize the researched data in order to increase the attractiveness of their country to international investors to take capital risk.
The VCPE ranking research is sponsored by Ernst and Young, in cooperation with Emlyon and supported by Prequin.