Endeavor partners Ernst & Young and MIT Sloan School of Management both conducted recent surveys on venture capital. The MIT study, which focuses solely on Brazil, highlighted some conditions in Brazil that make it an attractive place to invest, including the fact that there is a rapidly growing middle class with increased access to credit, as well as high digital engagement. After the U.S., Brazil has the highest number of Facebook and Twitter users.
Meanwhile, the Ernst & Young Annual Global VC Report describes 2012 as a challenging year for venture capital. Both the amounts raised and the number of rounds declined to their lowest point since 2009, and the market came under pressure from the ongoing tough exit environment. However, according to the report, as VCs moved toward investing in later-stage, high-growth ventures, there was a rise in involvement from angel investors and crowd-funding platforms that helped fund companies in the start-up stage.