Mediaboss Marketing

Research and Markets (http://www.researchandmarkets.com/research/76c490c9/venture_capital_in) has announced the addition of Frost & Sullivan's new report "Venture Capital Investment Trends in the United States Automotive Industry" to their offering.

This study analyzes venture capital investment trends in the United States automotive market during the past decade. Drivers and restraints for VC funding and factors that are looked for in a company before funding are discussed. How a funded company benefits is also studied. The breakup of the investments by region within the United States and the preferences of the sub-classification within the automotive market among the VC community are provided, as well as the outlook for VC funding.

DRIVERS EXPLAINED

Government Initiatives

A VC's portfolio is highly risky as they invest in companies that are prone to many uncertainties. Government initiatives, suchas tax reductions and subsidies, could help entrepreneurs as well as VCs in reducing their capital expenditure and seeing areturn on their investment sooner. This can drive VC activity.

High Gasoline Prices

VCs are very bullish on investments that would create green environment. Automotives is considered a subcategory of the clean environment sector among many VC investors. Thus, higher crude oil prices creates more need for alternative energy sources in sectors where VCs do heavy investing. There is a positive correlation between VC investments in value and crude oil prices over the years.

Customer Demand

Customers are responsible for driving change. Their preference towards adopting a new technology in the powertrain domain and other sub-classifications, such as telematics, influences VC funding. Also, speed of adoption is important because it helps reduce the payback period. Looking at recent trends, any investment related to technology in powertrain, driver interface (navigation maps, parking assist), and clean energy is expected to get back investment more quickly because of higher demand for these technologies.

Entrepreneurship, Research And Development

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Research and Markets: Venture Capital Investment Trends in the United States Automotive Industry