600 VCs And CEOs Made These Predictions For 2013

Dow Jones and the National Venture Capital Association surveyed 600 venture capitalists and CEOs, and came up with these eight predictions:

  • Enterprise and healthcare startups will see more investment, consumer startups less. "Consumer IT is most often predicted as ripe for over funding in 2013 with 62 percent of all VC respondents citing the sector."

  • CEOs will still try to fund raise, despite greater VC reluctance. "65 percent of VCs and 56 percent of CEOs believe terms will favor VCs in 2013."

  • US VCs will invest more in Latin America. "Latin America is cited by 55 percent of VCs as an area of increasing U.S. investment in 2013 followed by China (40 percent) and India (37 percent)."

  • Startups will be acquired instead of going public. "VCs and CEOs agree that acquisitions will be more prevalent in 2013 with 62 percent of both respondent bases predicting volume increases next year."

  • VC firms will face challenges as their industry contracts. "42 percent believe the market will concentrate with more dollars raised by fewer funds."

  • VCs investment returns will grow next year. "49 percent of VCs expect returns will improve next year."

  • Jobs will come back. "83 percent of CEOs surveyed expect to increase headcount in 2013 and 46 percent feel this hiring is achievable based on supply and demand."

  • But otherwise, economic progress will slow. "Forty-nine and 42 percent of CEOs and VCs respectively expect the U.S. economy to improve in 2013."



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