Knowing when to invest and where are sometimes difficult. You have to assess which countries offer the most promising markets and which ones have the biggest entrepreneurial support. The place where you choose to invest your money has to have a strong incentive or reason to invest with protection and venture support.
The 2015 Venture Capital and Private Equity (VC/PE) Country Attractiveness Index recently released a running list from best to unfavorable countries to place investments. Of the 120 countries analyzed, the United States, the United Kingdom, Canada, Singapore, and Japan ranked at the very top. Conclusions were made based on thousands of data points and each country’s overall attractiveness to VC/PE investors. This index is not only important to investors, but regulators who can use the information provided to set new policies or revise old ones to help create a more desirable package for investors.
In addition to well established “green light” markets, private equity investors have the ability to keep an eye on emerging markets with acceptable risk to reward ratios. Current emerging markets are Mexico, Indonesia, the Philippines, Nigeria, Turkey, and South Africa. Countries like China, Russia, India, and Brazil have been in the ranks for a while now, with China leading the way as most attractive. Although investors can sometimes jump the gun, or present themselves as overly enthusiastic for emerging markets, investing in them is the only way to jump start the process and potentially reap the extraordinary reward of being an early adapter.
As for the 2015 ranking, here are the top 10 attractive investment locations:
- United States
- United Kingdom
- Hong Kong
- New Zealand
And here are the 10 lowest ranking locations:
- Burkina Faso
For more information, be sure to check out the 2015 index here: The Venture Capital & Private Equity Country Attractiveness Index