Venture Capital Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | > 5.00 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | North America |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Venture Capital Market Analysis
Venture capital is the term used to call the financial resources provided by investors to startup firms and small businesses that show potential for long-term growth. It has become a very important source of capital for entrepreneurs, who often have problems with financing their needs through risk-averse banks. Venture capital investments incorporate a high level of risk as only some of the VC-backed companies develop into successful and highly profitable businesses.
Global Venture Capital Market deal-making has continued to grow, hitting record highs amid the COVID-19 pandemic. Although there was an initial pause in investing from March to May of 2020, investors have been pumping in money not only to support struggling portfolio companies but also to invest in new deals, particularly in later-stage information technology and healthcare concerns. The market also saw an uptick in special purpose acquisition companies (SPACs) and sponsor-backed private investment in public equity (PIPE) deals when the traditional publicly traded financing markets were less available. This was primarily due to the cost-effectiveness of these transactions and the speed of execution.
The size of the global venture capital industry has been increasing throughout all three stages - angel/seed, early, and late. Seed capital refers to the first round of funding, which is used to cover initial operating expenses and often comes from the founders' own personal assets. Startups can also be supported by so-called angel investors - wealthy individuals who invest smaller amounts of money and at an early stage.
500 Startups, an early-stage venture fund and seed accelerator based in California assisted in 139 angel/seed stage deals in 2019. The backing from venture capitalists seems to bear fruits in certain parts of the world. For instance, alone in the U.S., over 30 billion U.S. dollars were generated by IPOs from venture capital-backed companies in 2020.
Venture Capital Market Trends
This section covers the major market trends shaping the Venture Capital Market according to our research experts:
Distribution of Start-Ups Witnessing Venture Capital Industry Globally
In 2020, 61% of super start-ups across the world offered B2B solutions, whereas the other 39 percent offered B2C solutions. B2C and B2B are both forms of commercial transactions. B2C stands for business-to-consumer and is a process for selling products or services directly to consumers. On the other hand, B2B stands for business-to-business and is a process for selling products or services to other businesses.
Countries Increasing Start-ups Rate is Boosting the Venture Capital Market Globally
Highly valued startups are known as unicorns, which is a reference to their elusiveness. China and the United States have the highest number of unicorns worldwide but are one of the most active regions for startups in Latin America. Meanwhile, a smaller percentage of the population of South Korea and India are involved in startups.
As of April 2020, the most valuable startup worldwide was the Chinese tech company Ant Group, previously known as Ant Financial. Most of the highest valued unicorns globally hail from either China or the United States. Although more than twice as many unicorns were headquartered in the United States. as were in China, the highest valued Chinese unicorns were worth almost twice as much as their United States counterparts.
Venture Capital Industry Overview
The Global Venture Capital Market is highly competitive across various countries, including the United States, England, and China, and growing in some regions of the globe, including the Netherlands, Vietnam, and others, offering a huge number of competitive players dominating the Market, nowadays grabbing Market more powerfully by the new innovations and partnership with the foreign venture capital players yielding opportunities to the Market. Thus it has made the Global Venture Capital Market very competitive and strong. Many of these platforms were originally startups that evolved into mature businesses, while others were created by (or with the support of) key players in the field, such as Wealth and Asset management firms, or with collaboration with private equity companies. When it comes to overseeing existing portfolio companies, venture capital and private equity funds are working closely as partners with management to help navigate through the disruption. Strategies include categorizing portfolio companies into different buckets based on their financial performance, identifying any resources and liquidity needs, and then helping them procure funds, either in the form of capital infusion or external funding (such as bridge financing). Many firms, including NEA, Tiger Global, and IDG Capital, are leading Global Venture Capital Market to new heights and are expected to grow throughout the forecasted period.
Venture Capital Market Leaders
New Enterprise Associates
Sequoia
IDG Capital
Index Ventures
Tiger Global
*Disclaimer: Major Players sorted in no particular order
Venture Capital Market News
In 2022, IDG Capital Vietnam Confirms Investment in METAIN to Lead NFT-Empowered Real Estate Trend in Vietnam. IDG Capital also shows its ambition to lead the NFT Real estate trend and reveals its plan to proactively engage with global investors to attract investment into the Vietnam real estate market. With the high security, instantaneous settlement, transparent, seamless transaction process, blockchain, smart contract, and NFT (Non-fungible token) technology is transforming the real estate industry and will become the key trend in the next decades.
In 2020, VC investment in Europe set a second straight quarterly record, with USD 14.3 billion raised across 1,192 deals, compared to USD 13.8 billion across 1,473 deals in Q3'20. And The Americas accounted for more than half of VC investment globally during Q4'20, with USD 41 billion of investment across 2,725 deals. Of this amount, the United States accounted for USD 38.8 billion across 2,526 deals.
Venture Capital Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of Study
2. RESEARCH METHODOLOGY
3. EXCEUTIVE SUMMARY
4. MARKET INSIGHTS AND DYNAMICS
4.1 Market Overview
4.2 Funding and Revene Statistics in Venture Capital
4.3 Market Drivers
4.4 Market Restraints
4.5 Consumer Need and Behaviour Analysis- From Fintech Perspective
4.6 Porter's Five Forces Analysis
4.6.1 Threat of New Entrant
4.6.2 Bargaining Power of Buyer/ Consumer
4.6.3 Bargaining Power of Suppliers
4.6.4 Threat of Substitute Product
4.6.5 Intensity of Competitive Rivalry
4.7 Government Regulations and Industry Policies
4.8 Impact of COVID-19 on the market
5. MARKET SEGMENTATION
5.1 By Type
5.1.1 Local Investors
5.1.2 International Investors
5.2 By Industry
5.2.1 Real Estate
5.2.2 Financial Services
5.2.3 Food & Beverages
5.2.4 Healthcare
5.2.5 Transport & Logistics
5.2.6 IT & ITeS
5.2.7 Education
5.2.8 Other Industries
5.3 By Geography
5.3.1 North America
5.3.2 Latin America
5.3.3 Europe
5.3.4 Asia-Pacific
5.3.5 Middle-East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Tiger Global Management
6.1.2 New Enterprises Associates
6.1.3 Sequoia Capital
6.1.4 DST Global
6.1.5 IDG Capital
6.1.6 Index Ventures
6.1.7 Healthcare Royalty Partners
6.1.8 GGV Capital
6.1.9 Nanjing Zijin Investment
6.1.10 Greylock Partners*
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. DISCLAIMER
Venture Capital Industry Segmentation
The Global Venture Capital Market is one of the most widely demanded investment industries for small and medium-sized enterprises. A complete background analysis of the global Venture Capital Market, which includes an assessment of the economy, market overview, market size estimation for key segments, emerging trends in the market, market dynamics, and key company profiles, are covered in the report. The Global Venture Capital Market is Segmented By Type (Local Investors, International Investor), By Industry (Real Estate, Financial Services, Food & Beverages, Healthcare, Transport & Logistics, IT & ITeS, Education, and Other Industries), and By Geography (North America, Latin America, Europe, Asia-Pacific, and Middle-East and Africa).
| By Type | |
| Local Investors | |
| International Investors |
| By Industry | |
| Real Estate | |
| Financial Services | |
| Food & Beverages | |
| Healthcare | |
| Transport & Logistics | |
| IT & ITeS | |
| Education | |
| Other Industries |
| By Geography | |
| North America | |
| Latin America | |
| Europe | |
| Asia-Pacific | |
| Middle-East and Africa |
Venture Capital Market Research FAQs
What is the current Analysis of the Global Venture Capital Market size?
The Analysis of the Global Venture Capital Market is projected to register a CAGR of greater than 5% during the forecast period (2024-2029)
Who are the key players in Analysis of the Global Venture Capital Market?
New Enterprise Associates, Sequoia, IDG Capital, Index Ventures and Tiger Global are the major companies operating in the Analysis of the Global Venture Capital Market.
Which is the fastest growing region in Analysis of the Global Venture Capital Market?
Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Analysis of the Global Venture Capital Market?
In 2024, the North America accounts for the largest market share in Analysis of the Global Venture Capital Market.
What years does this Analysis of the Global Venture Capital Market cover?
The report covers the Analysis of the Global Venture Capital Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Analysis of the Global Venture Capital Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Venture Capital Industry Report
Statistics for the 2024 Venture Capital market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Venture Capital analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
