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Investing in Technology Ventures: Spreading across the globe. Spyros Trachanis Investment Director. Venture Capital in the US: stabilized. Investment Value in billion USD. But investors and companies now look beyond Silicon Valley. Remote development centers for cost reduction
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Investing in Technology Ventures: Spreading across the globe Spyros Trachanis Investment Director
Venture Capital in the US: stabilized Investment Value in billion USD
But investors and companies now look beyond Silicon Valley • Remote development centers for cost reduction • Leveraging larger talent pools • Moving closer to global markets • Broadband in Asia • China largest and fastest growing mobile telephony market in the world • New centers of venturing activity: Silicon Valley clones
Outsourcing: Go East! • Gartner: Up to 25% of traditional IT jobs situated in emerging countries by 2010 • India leads the outsourcing wave • 80% of offshore IT outsourcing market • 200.000 fresh Indian IT graduates p.a. and excellent quality technical education • €400/month entry salaries • China, Russia and the Ukraine • Outsourcing specialists: Ireland, Israel
China: Hardware and Semiconductors India: Software and Life Sciences Emerging Tech Superpowers IT Services $1,4 billion Sales $10,2 billion Market Cap Switches and routers $3,8 billion Sales PC’s and handhelds $2,3 billion Sales IT Services $1,1 billion sales $11,2 billion Market Cap
Israel as an annex of Silicon Valley • 100 Israeli tech companies listed on NASDAQ • Q1 2004: 111 deals, $ 323 million invested • $1.5 billion expected to be raised by Israeli funds in 2004 • Wireless and security among focus areas • Could Israel be running out of capacity in relation to talent?
Where is Europe in all that? • Technology industries where the EU maintains competitive advantages: • Automotive • Aerospace • Communications • Single European market progressing • Growing cross-border M&A • Larger, Pan-European companies
Takeaways for Greek tech companies • Be extrovert – The Greek market is not enough • Leverage Greece’s geographic position: • Regional players • Engage with larger European companies • Collaborate with Israel • Focus and develop two-three areas with comparative advantage • Avoid high volume, low-margin business: China and India will win!