Limited partners in the Asia-Pacific region are more optimistic about their venture capital portfolios over the next one year compared to those investing in the North America or Europe, as the West struggles with macroeconomic headwinds and higher interest rates.
LPs who have invested in the APAC region expect fewer down rounds of startups they have stakes in, compared to their peers invested in the US and Europe, showed a report by London-based private equity firm Coller Capital.
About 85% of North American LPs expect their VC portfolios to see a down round, while among European LPs, 72% expect a reduction in valuation of firms in their investment portfolios. As for APAC LPs, 59% expect decline in valuations, indicating that even as LPs across key regions expect valuations to be hit going forward, those in Europe or North America see a greater impact of the overall macroeconomic downturn on their investments.
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