Analysis of the Global Venture Capital Market Size (2024 - 2029)

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 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).