PUBLISHER: The Business Research Company | PRODUCT CODE: 1436774
PUBLISHER: The Business Research Company | PRODUCT CODE: 1436774
Venture capital represents private equity and financial support directed by investors toward startups and small businesses exhibiting long-term growth potential, often sourced from affluent individuals, investment banks, and financial entities.
Venture capital investment encompasses two primary types: first-time venture funding and follow-on venture funding. First-time venture funding targets nascent firms in their early stages, often lacking prior external funding. It supports seed funding initiatives, facilitating access to capital for developing new products or services. These investments range across fund sizes under $50 million, $50 million to $100 million, $100 million to $250 million, $250 million to $500 million, $500 million to $1 billion, and exceeding $1 billion. They are allocated across various industries, including real estate, financial services, food and beverages, healthcare, transportation and logistics, IT, information technology-enabled services, education, and other sectors.
The venture capital investment market research report is one of a series of new reports from The Business Research Company that provides venture capital investment market statistics, including venture capital investment industry global market size, regional shares, competitors with venture capital investment market share, detailed venture capital investment market segments, market trends and opportunities, and any further data you may need to thrive in the venture capital investment industry. This venture capital investment market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The venture capital investment market size has grown exponentially in recent years. It will grow from $251.19 billion in 2023 to $302.94 billion in 2024 at a compound annual growth rate (CAGR) of 20.6%. The growth observed in the historical period can be attributed to several key factors. The thriving entrepreneurial ecosystem played a significant role, fostering innovation and driving market expansion. Furthermore, shifts in market trends and industry landscapes contributed to this growth trajectory. Government policies and incentives aimed at supporting businesses and fostering growth also played a pivotal role. Additionally, the risk appetite and confidence among investors bolstered investments, further fueling the expansion. The emergence of new sectors and technologies also contributed to the overall growth observed during this period.
The venture capital investment market size is expected to see exponential growth in the next few years. It will grow to $633.55 billion in 2028 at a compound annual growth rate (CAGR) of 20.3%. The projected growth in the forecast period is expected to be driven by several significant factors. Notably, the rise of sustainable and impact investing practices will play a pivotal role in propelling market expansion. Healthcare innovation, coupled with globalization and cross-border investments, will also contribute significantly to this anticipated growth. Initiatives focused on diversity and inclusion, as well as the resilience and adaptability of businesses, will further fuel this projected expansion. Moreover, the rapid adoption of technology across various sectors will be a key driver of growth.
The burgeoning number of startups and small businesses is driving the venture capital investment market. Venture capital serves as a lifeline for these businesses, offering capital, expertise, and support to navigate a competitive landscape. In the US alone, approximately 33.2 million small firms operated in 2022, accounting for 99.9% of all businesses. Moreover, over 1.1 million new businesses emerged between March 2020 and March 2021, emphasizing the pivotal role of venture capital in supporting these entities and fostering market competition.
A rising number of high-net-worth individuals (HNWIs) is expected to propel the growth of the venture capital investment market going forward. High-Net-Worth Individuals (HNWIs) are individuals with a substantial financial net worth, typically characterized by significant assets, investments, or income, placing them in a higher wealth bracket compared to the average population. High-net-worth individuals (HNWIs) use venture capital investment as a strategic financial tool to support and potentially gain returns from early-stage or high-growth companies, contributing to wealth accumulation and diversification. Therefore, the rising number of high-net-worth individuals (HNWIs) is driving the growth of the venture capital investment market.
The venture capital investment market is witnessing a rising trend of strategic partnerships among major players. IDG Capital Vietnam teamed up with METAIN in March 2022 to bolster NFT real estate development in Vietnam. This collaboration aims to attract global investors by leveraging METAIN's blockchain-based real estate co-investment platform. Such partnerships signify a strategic approach to strengthen market presence and diversify investment avenues.
In the venture capital investment domain, significant companies are prioritizing product innovation, exemplified by initiatives such as launching corporate venture capital (CVC) arms and innovation labs. For instance, in October 2023, Automatic Data Processing Inc. (ADP), a US-based technology firm specializing in human capital management solutions, introduced ADP Ventures. This newly formed CVC arm and innovation lab aims to expand into adjacent segments and geographies while developing assets to capture new market opportunities.
In October 2022, Google LLC, a US-based technology giant, entered into a partnership with L2 Capital to enhance L2 Capital's investments in various Web3 and blockchain ecosystems. This collaboration is designed to expedite the sustainable growth of L2 Capital's portfolio companies in cloud-based businesses, aligning with Google's commitment to advancing emerging technologies.
Major companies operating in the venture capital investment market report are Intel Capital, The Blackstone Group Inc., Benchmark Capital, Andreessen Horowitz, Sequoia Capital, Viking Global Investors LP, New Enterprise Associates Inc., Greylock Partners, IDG Capital Partners, Khosla Ventures, Bessemer Venture Partners, Kleiner Perkins, Battery Ventures LP, Union Square Ventures, Founders Fund, Tiger Global Management, Innovation Works, First Round Capital, AME Cloud Ventures, Lowercase Capital, GGVC Capital, Alumni Ventures, Index Ventures, Accel Partners, DST Global Funds, HealthCare Royalty Partners, Nanjing Zijin Investment Group Co. Ltd., Pace Capital, Gigafund, Cypress Growth Capital
North America was the largest region in the venture capital investment market in 2023. The regions covered in the venture capital investment market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the venture capital investment market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The venture capital investment market includes revenues earned by entities by providing deal sourcing, target evaluation or live deal support, portfolio monitoring and support, and fund-level support services. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Venture Capital Investment Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on venture capital investment market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for venture capital investment ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The venture capital investment market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.
The impact of higher inflation in many countries and the resulting spike in interest rates.
The continued but declining impact of covid 19 on supply chains and consumption patterns.