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CAPITAL CORP. SYDNEY

73 Ocean Street, New South Wales 2000, SYDNEY

Contact Person: Callum S Ansell
E: callum.aus@capital.com
P: (02) 8252 5319

WILD KEY CAPITAL

22 Guild Street, NW8 2UP,
LONDON

Contact Person: Matilda O Dunn
E: matilda.uk@capital.com
P: 070 8652 7276

LECHMERE CAPITAL

Genslerstraße 9, Berlin Schöneberg 10829, BERLIN

Contact Person: Thorsten S Kohl
E: thorsten.bl@capital.com
P: 030 62 91 92

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Venture Capital Losses in Emerging Markets

General

As venture capital investors increasingly look to developing countries for new opportunities, they are finding that losses are more common in these markets. In fact, a recent report by Cambridge Associates found that nearly one-third of venture capital investments in emerging markets resulted in a loss.

There are a number of reasons why losses are more common in emerging markets. First, many startups in these countries are unable to scale up their businesses to meet the demands of a growing market. Second, the legal and regulatory environments in many emerging markets are still evolving, which can create uncertainties and hindrances for businesses. Finally, corruption is often more rampant in emerging markets, which can lead to a loss of investor confidence.

Despite the higher risk involved in investing in emerging markets, many venture capitalists remain attracted to the potential for high returns. However, it is important for investors to carefully consider the risks before investing in these markets.

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