The improvement of First Quartile investors' business model consists of a lower dependency on the rare local "High Quality Deals" and a higher reach to a significantly bigger deal flow - enabling higher selectivity, if not a best-of-breed approach in a given sector.

At Akka Venture we strongly believe in the "hands on" approach of investors to generate higher returns, and this is much easier to do as a local (or glocal) investor. This is why we most often syndicate local investors with international investors, despite this not being absolutely necessary especially in regions where there is almost no private equity investors.

The best investment opportunities are not always local, especially in the "relatively" over-covered English and French markets which face an inflation of valuations on the best deals at least, and increased risk exposure. At the end of the day, the goal of the investors is to maximize the return for its own shareholders. One good way to do that is to multiply its deal flow to be able to chase the best opportunities wherever they might be.

From the very low level of cross border investments currently which is still around 5 to 10% of their VC assets on average, we believe there is room for improvement and target that 30% of foreign investments within one's portfolio would be the sign of a reasonable investment strategy. 

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"The best opportunities are not always local"