{"id":44373,"date":"2023-10-20T15:35:31","date_gmt":"2023-10-20T15:35:31","guid":{"rendered":"http:\/\/startupsmart.test\/2023\/10\/20\/pe-and-vc-investments-soar-44-in-fy2011-startupsmart\/"},"modified":"2023-10-20T15:35:31","modified_gmt":"2023-10-20T15:35:31","slug":"pe-and-vc-investments-soar-44-in-fy2011-startupsmart","status":"publish","type":"post","link":"https:\/\/www.startupsmart.com.au\/uncategorized\/pe-and-vc-investments-soar-44-in-fy2011-startupsmart\/","title":{"rendered":"PE and VC investments soar 44% in FY2011 – StartupSmart"},"content":{"rendered":"

Private equity and venture capital investments have grown 44% over the past year, according to the latest analysis of annual industry data, suggesting the capital-raising prospects for start-ups are brightening. <\/span><\/p>\n

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According to the Yearbook, an annual report on the activities of Australian PE and VC firms, investment reached $3.6 billion in the 2011 financial year; the highest level in three years.<\/p>\n<\/p>\n

The report is compiled by the Australian Private Equity and Venture Capital Association.<\/p>\n

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\u201cInvestments by PE and VC funds increased 44% year-on-year to $3,638 million,\u201d AVCAL said in its report said.<\/p>\n

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\u201cHowever, much of this was due to funds raised before the global financial crisis, reflecting ongoing difficulties in raising new funds.\u201d<\/p>\n

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\u201cThe top 10 deals accounted for 74% of total investment amounts in FY2011. However, the number of companies receiving investments declined to 150 from 183 the previous year.\u201d<\/p>\n

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\u201cOf the 213 investments completed in FY2011… 63% were follow-on deals. VC investments saw a 35% year-on-year decrease to $120 million, with follow-on rounds accounting for 70%.\u201d<\/p>\n

 <\/p>\n

The report reveals fundraising activity in the 2011 financial year was mixed.<\/p>\n

 <\/p>\n

PE and VC funds raised $2.3 million over the year \u2013 72% more than the previous year \u2013 but 77% were raised by three funds alone.<\/p>\n

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Meanwhile, the number of companies acquired in the 2011 financial year decreased, reflecting greater investment selectivity and an increasing concentration of activity within the industry.<\/p>\n

 <\/p>\n

Dr Katherine Woodthorpe, chief executive of AVCAL, says 2011 has seen more funds raised but by fewer fund managers, marking a period of consolidation within the industry.<\/p>\n

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\u201cHowever, there has been an increase in the number of exits and many of them have generated excellent returns,\u201d Woodthorpe says.<\/p>\n

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\u201cOverall the data is encouraging, demonstrating the strength and stability of the industry in times of wider economic volatility and uncertainty.\u201d<\/p>\n

 <\/p>\n

The importance of foreign capital in funding Australian businesses is clearer than ever, with around half of all new commitments to local fund managers sourced from overseas.<\/p>\n","protected":false},"excerpt":{"rendered":"

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