3i Group plcLondon, United Kingdom

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3i Group Competition

Now Viewing 3i Group's competition in: Venture Capital

Recent Developments

Clean Tech Gains Respect, Dollars - Clean Tech, a sector founded on environmental investments, is gaining respect and moving up the list of venture capital's largest sectors, according to industry experts. Investment in Clean Tech rose 51 percent in first quarter 2008 compared to first quarter 2007, according to PricewaterhouseCoopers' MoneyTree Report. Further, a host of new investment managers have added new energy to the sector, creating excitement at both well-established and newer venture capital funds.

Major Entrant to Clean Tech Sector - The Clean Tech sector, which focuses on energy efficiency and environmentally friendly investments, has gotten much larger due to two major fund announcements by Kleiner Perkins Caufield and Byers, one of the world's largest venture capital firms. The company recently released details on two new Clean Tech funds: one to focus on startups and one to fund more established companies. The funds together total $1.2 billion, and were created with input from environmental experts such as Al Gore.

Large Canadian Sector Hurting - Canada's biotech and life sciences sectors are having difficulties in 2008, according to several recent reports. Thomson Reuters and Canada's Venture Capital & Private Equity Association (CVCA) indicate a 74 percent drop in venture capital investment in the country's life sciences sector in first quarter 2008 compared to first quarter 2007. In response, several measures are being considered, including one by the government of British Columbia, which has started its own venture capital fund to attract investors to Canada.

Competitive Landscape

Demand is driven primarily by the pace of technological innovation and the number of companies created to commercialize new technologies. The profitability of individual companies depends on successfully choosing and managing a portfolio of investments. Large companies have advantages in attracting investors, developing expertise in multiple technology markets, and funding large deals. Small companies can compete effectively by concentrating on specific market sectors or geographic areas. The average venture capital investment is about $8 million.

Venture Capital Industry Forecast

from Hoover's/D&B subsidiary First Research

The output of US funds, trusts, and other financial vehicles, an indicator for venture capital firms, is forecast to increase at an annual compounded rate of 2.3 percent between 2007 and 2012.

Funds, Trusts, and other Financial Vehicles Growth Slow

First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.

First Research Opportunity Rating

The First Research Opportunity Rating is First Research's estimate of industry performance vs. industry risk over the next 12 to 24 months.

  • Demand: Tied to investment returns
  • Need technical expertise
  • Risk: Slower economy produces poor returns

Industries Where 3i Group Competes

  • Financial Services
    • Investment Firms (primary)
      • Venture Capital