LAVCA's 2007 Scorecard

05/15/2007

Author:
Latin American Venture Capital Association
Chicago, IL
United States
www.lavca.org

Categories:
Best Practices
Capital Markets
Development Finance Institutions
Industry Regulation
Institutional Investors
Pension Funds

Article:
For Immediate Release

2007 LAVCA Scorecard Launched –
Ranking Latin America’s VC/PE Investing Environments

Chile Stays On Top Despite Score Slip – Trinidad and Uruguay Leap Forward

LAVCA's 2007 Scorecard

May 15, 2007 | Chicago, United States – With 2006 regional fundraising levels doubled – and investment levels quadrupled – investor confidence has clearly grown in Latin America and the Caribbean (LAC) as a destination for international venture capital and private equity (VC/PE). Many investors are intrigued by recent spectacular exits from the region, while others note industry-specific legislation and increasing participation from local pension funds.

Overall score – *Ranked by 2007 scores^*			Score		**	VC Flows
1	UK	█████████████████	90	▼	3	0.79%
2	Israel	████████████████	82	▲	3	0.93%
3	Spain	███████████████	75	▲	6	0.33%
4	Chile	██████████████	74	▼	3	0.15%
5	Brazil	████████████	65	▲	6	0.06%
6	Trinidad & Tobago	████████████	62	▲	18	0.02%
7	Mexico	████████████	60	▲	6	0.03%
8	Taiwan	███████████	59	↔		0.14%
9	Uruguay	██████████	56	▲	16	0.30%
10	Costa Rica	█████████	49	▼	4	0.03%
11	Colombia	█████████	47	▲	4	0.01%
12	Argentina	████████	43	▲	1	0.00%
12	Ecuador	████████	43		†	0.02%
14	El Salvador †	████████	41	↔		0.01%
14	Peru	████████	41	▼	6	0.00%
16	Dominican Republic †	███████	37		†
** = Score change from 2006 † = First year in study: No comparative score for 2006
^Overall score is the weighted total of all scorecard indicators, ranging from 0-100 where 100=best / strongest environment

The region’s nascent VC/PE industry shows momentum, but both international investors and local policymakers are increasingly aware that appropriate business environments are needed to sustain positive industry growth. The recently launched 2nd Annual Scorecard on the Venture Capital and Private Equity Environment in Latin America and the Caribbean charts regional strengths and weaknesses to reveal the potential for growing VC/PE in the region.

The Annual Scorecard – which tracks developments in 12 LAC nations – is produced for the Latin American Venture Capital Association (LAVCA) by the Economist Intelligence Unit (EIU).

2007 scores – based on a matrix of 12 criteria – demonstrate progress in many countries to promote VC/PE, but reveal that the region as a whole is held back by broader problems including weak judicial systems and international perceptions of corruption.

Key 2007 findings include:

Friendliness of business environments to VC/PE investments continues to vary sharply across the region.
Countries’ business environment rankings are associated in rough but important ways with local investment levels.
Changes are more likely in developed markets that already enjoy considerable activity and where there is thus a perception of further potential to be tapped through regulatory reform
There is considerable scope to lower barriers to institutional investors in VC/PE activities.

Click here to access by-country scores and download the full report.

About LAVCA:

The Latin American Venture Capital Association (LAVCA) is a not-for-profit membership organization serving a core membership of venture capital and private equity investors active in Latin America and the Caribbean.

LAVCA’s mission is to promote the growth of the venture capital and private equity industry in Latin America and the Caribbean through research, education, networking, best practices, and the advocacy of sound public policy.

For more information on LAVCA and its activities please visit www.lavca.org.

About the EIU:

The Economist Intelligence Unit is the world's foremost provider of country, industry and management analysis. Founded in 1946 when a director of intelligence was appointed to serve The Economist, the Economist Intelligence Unit is now a leading research and advisory firm with more than 40 offices worldwide. More information can be found at www.eiu.com.