Without being familiar with the socio-‐economic environment in various host countries, an investor cannot
make rational international VC and PE allocation decisions. Investors overcome potential knowledge deficits
and gather data to analyse the determinants they deem important before allocating to a particular country.
However, this country due diligence is time-‐consuming and costly. Additionally, the pace of economic
development of many emerging countries makes the selection of those that meanwhile support VC and PE
activity more and more cumbersome. Our index guides institutional investors to solve the problem of where
to allocate their capital. We aggregate and provide the requisite information for international VC and PE
allocation decisions. Of course, this information cannot act as a substitute for investors’ own efforts to build
up country knowledge and experience. It can only facilitate this process and support the initial due diligence
stage