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North America Venture Capital Market Size (2024 - 2029)

The North America Venture Capital Market is experiencing significant growth, driven by the increasing number of unicorn companies and the rising demand for venture capital to support emerging start-ups. Despite the challenges posed by COVID-19, which led to a slight decline in the number of deals, the market has shown resilience, particularly in biotechnology, software, and online gaming sectors. The majority of investments are concentrated in later-stage deals, with a substantial portion of funding facilitated by major investment banks located in the region.

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Market Size of North America Venture Capital Industry

North America Venture Capital Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2020 - 2022
CAGR > 6.00 %
Market Concentration Medium

Major Players

North America Venture Capital Market Major Players

*Disclaimer: Major Players sorted in no particular order

North America Venture Capital Market Analysis

North America Venture Capital Market is expected to register a CAGR of greater than 6% in the forecasted period. North America exists as the region with the largest number of unicorn companies globally, existing at 697 in number currently. This rise in unicorns is leading to a large number of start-ups emerging in the region with an increase in demand for Venture capital to expand the business. During the last year, total Venture capital in North America reached USD 182 billion with an annual growth rate of 14%.

COVID-19 hit the Venture Capital investment landscape in North America with about 6,564 venture capital deals completed in North America during the period, down 5% from the pre-pandemic level. The change varies across investment types, with the biggest impact on seed-stage deals. Biotechnology firms received the largest venture funding in the period, with software companies and online gaming start-ups existing next in line.

By stage most of the venture capital investment deals in the United States exist at the last stage, with the early stage, Angel/Speed, next in line. Venture capital investment in a later stage exists at a value of greater than USD 238 billion last year. With offices of leading investment banks of JP Morgan, Goldman Sachs, and BofA Securities headquartered in the United States, it makes it easier for North American growing businesses to get venture funding.

North America Venture Capital Industry Segmentation

Venture capital is a form of private equity financing that venture capital firms or funds provide to startups, early-stage, and emerging companies that have been deemed to have high growth potential or that have demonstrated high growth.

North American venture Capital Market is Segmented by Stage of Investment (Angel/Seed Investment, Early-stage Investment, and Late-Stage Investment), by Industry (Fintech, Pharma, Consumer Goods, Industrial/Energy, IT Hardware & Services, and Other Industries), and by Country (USA, Canada, Mexico). The report offers market size and values in (USD) during the forecasted years for the above segments.

By Stage of Investment
Angel/Seed Investing
Early-stage Investing
Later-stage Investing
By Industry
Fintech
Pharma and Biotech
Consumer Goods
Industrial/Energy
IT Hardware and Services
Other Industries
By Country
USA
Canada
Mexico
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North America Venture Capital Market Size Summary

The North America venture capital market is poised for significant growth, driven by the region's status as a hub for unicorn companies and a burgeoning startup ecosystem. The demand for venture capital is on the rise as these startups seek funding to expand their operations. The market is characterized by a diverse range of investment stages, with a notable concentration in later-stage deals. The presence of major investment banks in the United States facilitates access to venture funding, further bolstering the market's expansion. Despite the challenges posed by the COVID-19 pandemic, which saw a slight decline in venture capital deals, sectors such as biotechnology, software, and online gaming have continued to attract substantial investments. The Canadian market also contributes significantly, with Ontario, British Columbia, and Alberta leading in venture capital deal value.

The competitive landscape of North America's venture capital market is marked by the involvement of both international and domestic players, creating a dynamic environment with ample growth opportunities. The fintech sector, in particular, is a major driver of investment, with innovations in open banking, digital lending, and blockchain attracting significant capital. The emergence of leading fintech unicorns like Stripe and Chime underscores the sector's potential. Additionally, strategic investments by global firms, such as AXA Venture Partners' focus on late-stage tech companies, highlight the region's appeal to high-growth industries. This competitive and opportunistic market environment is expected to continue fostering innovation and attracting investment in the coming years.

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North America Venture Capital Market Size - Table of Contents

  1. 1. MARKET DYNAMICS AND INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Rising Investment in Fintech and Life Science Industry

      2. 1.2.2 Rising Number of Unicorns In North America

    3. 1.3 Market Restraints

      1. 1.3.1 Rising Risk in Market with Global Economic Uncertainity

      2. 1.3.2 Majority of Growth limited in ICT and Life Science segment

    4. 1.4 Market Opportunities

      1. 1.4.1 Rise in Number of Businesses in North American Region

      2. 1.4.2 Rising Investment from shared asset and banking in venture capital

    5. 1.5 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.5.1 Bargaining Power of Buyers

      2. 1.5.2 Bargaining Power of Suppliers

      3. 1.5.3 Threat of New Entrants

      4. 1.5.4 Threat of Substitutes

      5. 1.5.5 Intensity of Competitive Rivalry

    6. 1.6 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Stage of Investment

      1. 2.1.1 Angel/Seed Investing

      2. 2.1.2 Early-stage Investing

      3. 2.1.3 Later-stage Investing

    2. 2.2 By Industry

      1. 2.2.1 Fintech

      2. 2.2.2 Pharma and Biotech

      3. 2.2.3 Consumer Goods

      4. 2.2.4 Industrial/Energy

      5. 2.2.5 IT Hardware and Services

      6. 2.2.6 Other Industries

    3. 2.3 By Country

      1. 2.3.1 USA

      2. 2.3.2 Canada

      3. 2.3.3 Mexico

North America Venture Capital Market Size FAQs

The North America Venture Capital Market is projected to register a CAGR of greater than 6% during the forecast period (2024-2029)

Sequoia Capital , Khosla Ventures , Accel, New Enterprise Associates and Real Ventures are the major companies operating in the North America Venture Capital Market.

North America Venture Capital Market Report Snapshots

North America Venture Capital Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)