USA Still Tops for VC, PE Investment: Report

Some old favorites top the list of the most attractive countries to invest in post-COVID-19, the 2021 Venture Capital and Private Equity Country Attractiveness Index reveal. 

The USA takes the top spot, with the United Kingdom, Japan, Germany, and Canada rounding out the top five. China, South Korea, and France made great strides in the rankings. Top countries, especially China, are expected to make quick recoveries.

The study ranks 125 countries on the quality of the investment environment they offer venture capitalists and private equity parties. Each country is analyzed on thousands of data points focused on economic activity, depth of capital markets, taxation, investor protections, and corporate governance, human and social environment, and entrepreneurial culture and deal opportunities.

Spain made the top 20 due to a professional finance community, entrepreneur-friendly culture, and increasing capital market activity. The United Kingdom ranks high, though the report’s authors stress Brexit’s potential effects are not yet visible.

The gap between the US and UK has grown since the last report while the gaps between the others in the top five have narrowed. Many are looking to emerging economies for faster growth, but they need to acknowledge risk factors such as underdeveloped markets.

More information on the report can be found here.

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