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Explore the evolving landscape of technology investment, including the rise of remote development centers, leveraging talent pools, and expanding into global markets. Discover the potential of outsourcing in emerging countries and the growing tech industries in China, India, and Israel. Learn how Greek tech companies can leverage their advantages and engage with larger European players for growth and success.
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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!