China is the designated number one global target for investment opportunities revealed in a recent survey, by Deloitte & Touche LLP and the National Venture Capital Association in the United States.

The United States remains the most attractive investment target for venture capital (VC) firms worldwide. The survey was conducted between February and April 2005 and measured attitudes and intentions regarding investment regions and industry sectors of 545 venture capitalists worldwide.

"China is of great interest to the U.S. VC industry, with U.S. general partners who responded to the Deloitte/NVCA 2005 survey naming China as a significant investment target over the next five years. In addition, of U.S. VCs already investing in China, 20 percent plan to increase their investment focus in there," claims Mark Jensen, partner and national director of Deloitte & Touche LLP's Venture Capital Services Group.

In an exclusive with ChinaVentureNews, Mark Heesen, president of the National Venture Capital Association, asserts that "China seems to have many of the ingredients to become a high growth, innovative market. However, it is still extremely early in the life cycle and there is much more pioneering work to be done in China before US venture capitalists invest in a substantial way. Right now, there is a lot of Exploration being done, which is necessary but a far cry from being the next Silicon Valley anytime soon."

Survey highlights:

*20 percent of U.S.-based VC respondents plan to increase their global investment activity over the next 5 years, up from 11 percent currently investing abroad.
* Forty-two (42) percent plan to invest abroad only with other investors that have a local presence.
*39 percent plan to develop strategic alliances with experienced foreign-based venture capital firms.
*30 percent plan to open satellite offices in select regions globally.
*U.S. VCs regard China as the primary investment target over the next 5 years.
* Technology is the lead focus for 51 percent of the VCs.

Next week read about US venture capitalists signing up for membership in the China Venture Capital industry.