The Venture Capital & Private Equity
Country Attractiveness Index
Alexander Groh, Heinrich Liechtenstein, Karsten Lieser and Markus Biesinger
About the Index
On this website, we present the results of a comprehensive and long-term research project on how to measure the attractiveness of a country for investors in Venture Capital and Private Equity assets. The project was initiated at IESE Business School Barcelona in 2006 with a European pilot study. From the European study, we gained experience to extend the study globally. Since 2006 two professors, two doctoral students, and many research assistants have worked on the project. We selected and collected more than 300 different data series from many providers – ranging back to 2000. We aim to include as many countries as possible, and handle more than 200,000 individual data records.
Investors in Venture Capital and Private Equity funds have a key objective: to get access to transactions with satisfying risk and return profiles. They look globally to achieve their goals, and often set their sights on emerging regions. To find prime investment opportunities, investors generally look several years down the road and focus on specific factors like: economic activity (GDP, inflation, unemployment rate); size and liquidity of capital markets; taxation; investor protection and corporate governance; the human and social environment (including human capital, labour market policies and crime); and entrepreneurial culture and opportunities (including innovation capacity, the ease of doing business and the development of high-tech industries). The idea of the Venture Capital and Private Equity Country Attractiveness Index is to take into account all of these factors across different nations and to determine the relative positioning of particular economies and regions as they stand in relation with respect to their attractiveness for Venture Capital and Private Equity investments.
This is the tenth edition of the Venture Capital and Private Equity Country Attractiveness Index. It is certainly subject to critique and we invite constructive feedback to help us improve future editions. Selected data series may be discarded in future index versions and new data series may be used. In each index edition, we refer to data of highest quality and try to increase the number of countries covered. Nevertheless, some developing countries are still missing in our list. Due to the updates, our index structure is dynamic and always based on the most adequate and recent information. We believe this index is unique in providing transparency about international Venture Capital and Private Equity markets on such a broad scope and hope that investors appreciate the available information. Politicians may utilize our findings to increase their countries’ attractiveness for risk capital investors.
We invite you to download our annual report, where we comprehensively describe the index structure, the data series, the aggregation approach, and the results. In the section Country Profiles of this website, we propose a tool that allows you to benchmark countries and regions.
We hope that the 2021 Venture Capital and Private Equity Country Attractiveness Index is of value for you.
The Editors
Last updated: 21 Jun 2021