Venture Capital Investment Market

Venture Capital Investment Market

  • BFSI-4309
  • 4.6 Rating
  • 165 Pages
  • Upcoming
  • 84 Reviews
  • PDF Excel PPT
Swarup

Author :

Swarup Sahu

vineet

Fact-checked by :

Vineet Pandey

Ranjit

Editor :

Ranjit Pankhade

Venture Capital Investment Market Outlook 2031

The global venture capital investment market size was valued at USD 208.37 Billion in 2022 and is projected to reach USD 1083.23 Billion by 2031, expanding at a CAGR of 20.1% during the forecast period, 2023 – 2031.

Venture capital refers to an investment that is provided by investors to budding innovators and business start-ups that exhibit great potential to register significant profit margins in the future. The type of investment is mainly available in the form of private equity and is mainly financed by investment banks, well-off investors, or other investment foundations towards start-ups.

Venture Capital Investment Market Outlook

The return on investment is usually equity shares that is provided to the investors and they are given a seat on the decision-making table of the company. The investors are owners of the company and have a say in the company’s decisions and operations. Venture capital can be provided to a company in any stage but is usually provided during the early stage or the seed-round stage, where the company has just begun evolving.

Before engaging in venture capital investment, the investor’s firm does a due diligence of the start-up company and analyzes its products, management, strategies, operations, and others to ascertain that the company is worth investing in.

  • Growing number of start-ups and small businesses in need of investment and funding is the primary driver of the market.
  • Diverse industry verticals require capital investments such as healthcare, biotechnology, media & entertainment, medical sciences, among others which has further propelled the market growth.
  • The development of machine learning and algorithms used by investment firms and venture capitalists is strengthening the market.
  • COVID-19 negatively impacted the market due to economic breakdowns and the regulations and lockdowns imposed by the government.
  • Venture capitalists are focused on modifying their investment plans and strategies to invest in profitable companies, which is projected to positively impact the market in the coming years.
  • The presence of research analysts who research the company’s operations, marketing, management, and other categories helps investors in ascertaining the profitability of the company and making a reasonable investment. These are the key opportunities for the market growth.

Scope of Venture Capital Investment Market Report

The report on the global venture capital investment market includes an assessment of the market, size, share, trends, segments, and regional markets. Overview and dynamics have been included in the report.

Attributes

Details

Report Title

Venture Capital Investment Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast

Base Year

2022

Historic Data

2016–2021

Forecast Period

2023–2031

Segmentation

Sectors (Pharma & Biotech, Software, Medical Devices & Equipment, Media & Entertainment, IT Hardware, IT Services & Telecommunication, Consumer Goods & Recreation, Energy, Medical Services & Systems, and Others), Fund Sizes (Below USD 50 Million, USD 50-100 Million, USD 100-250 Million, USD 250-500 Million, USD 500 Million- 1 Billion, and Above USD 1 Billion), Funding Types (First-time Venture Funding and Follow-on Venture Funding)

Regional Scope

Asia Pacific, North America, Europe, Latin America, and Middle East & Africa

Report Coverage

Market Scope, Analysis, Share, Competitive Analysis, Growth Facts, Restraints, Opportunities, and Revenue Forecast

Key Players Covered

Index Ventures; Accel; Benchmark; Bessemer Venture Partners; Andreessen Horowitz; Founders Fund LLC; Ggv Management L.L.C.; Sequoia Capital Operations LLC; First Round Capital LLC; and Union Square Ventures LLC

Venture Capital Investment Market Segment Insights

Sectors Segment Analysis

Based on sectors, the venture capital investment market is segmented into pharma & biotech, software, medical devices & equipment, media & entertainment, IT hardware, IT services & telecommunication, consumer goods & recreation, energy, medical services & systems, and others.

Technological developments globally have significantly accelerated the growth of the software segment and the segment is projected to register a substantial CAGR during the forecast period. Venture capital investments in software companies has resulted in the delivery of excellent product and their designs due to availability of funds for research and development.

The rise in average deal sizes and presence of key players has further propelled the growth of the market. The emergence of elite and innovative technological and software companies has resulted in an increase in venture capitalism.

Venture Capital Investment Market Sector

Fund Sizes Segment Analysis

On the basis of fund sizes, the market is categorized as below USD 50 million, USD 50-100 million, USD 100-250 million, USD 250-500 million, USD 500 million - 1 billion, and above USD 1 billion.

The USD 100-250 million segment is projected to grow at a robust rate during the forecast period. The average size of fund managed by venture capitalist firms is estimated at around USD 207 million in venture capital per year for the investors.

Due to COVID-19 and the subsequent economic breakdown, the availability of funds and overall investments were decreased significantly. However, the key players are coming up with various strategic developments and machine learning to efficiently engage in venture capitalism.

Funding Types Segment Analysis

Based on funding types, the market is bifurcated into first-time venture funding and follow-on venture funding. First time venture funding refers to the investment in startups or businesses for the first time and involves a long time in securing substantial capital commitments to support a fund’s initial closing.

The strong performance of first-time funds has significantly attracted various fund managers to engage in first-time venture funding. The first-time venture funding segment is projected to grow at a significant rate during the forecast period.

Regional Outlook

In terms of regions, the global venture capital investment market is classified as North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. North America is projected to exhibit significant market expansion due to the technological developments and the emergence of software companies in need of funding and venture investments.

The growth of the Silicon Valley in North America has further accelerated the growth of the market. Owing to the industry's proximity to Silicon Valley, the technology industry—the Internet, healthcare, computer hardware and services, and mobile & telecommunications—receive the vast bulk of venture capital funding.

Other industries, however, have profited from venture capital funding. Staples and Starbucks are two notable instances of companies that pursue venture capital funding. Venture finance is no longer the exclusive domain of the wealthy. Institutional investors and well-established businesses have also gotten involved. Google and Intel, for example, each have their own venture funds to invest in innovative technology.

Venture Capital Investment Market Region

Segments

Sectors

  • Pharma & Biotech
  • Software
  • Medical Devices & Equipment
  • Media & Entertainment
  • IT Hardware
  • IT Services & Telecommunication
  • Consumer Goods & Recreation
  • Energy
  • Medical Services & Systems
  • Others

Fund Sizes

  • Below USD 50 Million
  • USD 50-100 Million
  • USD 100-250 Million
  • USD 250-500 Million
  • USD 500 Million- 1 Billion
  • Above USD 1 Billion

Funding Types

  • First-time Venture Funding
  • Follow-on Venture Funding

Regions

  • North America
  • Europe
  • Latin America
  • Asia Pacific
  • Middle East & Africa

Key Players

  • Index Ventures
  • Accel
  • Benchmark
  • Bessemer Venture Partners
  • Andreessen Horowitz
  • Founders Fund LLC
  • Ggv Management L.L.C.
  • Sequoia Capital Operations LL
  • First Round Capital LLC
  • Union Square Ventures LLC

Competitive Landscape

Key players in the global venture capital investment market are Index Ventures; Accel; Benchmark; Bessemer Venture Partners; Andreessen Horowitz; Founders Fund LLC; Ggv Management L.L.C.; Sequoia Capital Operations LLC; First Round Capital LLC; and Union Square Ventures LLC.

These players are widely engaged in various business development strategies including mergers & acquisitions, collaborations, agreements, and partnerships to strengthen their geographical presence and expand their consumer base globally.

Venture Capital Investment Market Key Players

1. Executive Summary
2. Assumptions and Acronyms Used
3. Research Methodology
4. Venture Capital Investment Market Overview
  4.1. Introduction
     4.1.1. Market Taxonomy
     4.1.2. Market Definition
  4.2. Macro-Economic Factors
     4.2.1. Industry Outlook
  4.3. Venture Capital Investment Market Dynamics
     4.3.1. Market Drivers
     4.3.2. Market Restraints
     4.3.3. Opportunity
     4.3.4. Market Trends
  4.4. Venture Capital Investment Market - Supply Chain
  4.5. Global Venture Capital Investment Market Forecast
     4.5.1. Venture Capital Investment Market Size (US$ Mn) and Y-o-Y Growth
     4.5.2. Venture Capital Investment Market Size (000’ Units) and Y-o-Y Growth
     4.5.3. Venture Capital Investment Market Absolute $ Opportunity
5. Global Venture Capital Investment Market Analysis and Forecast by Region
  5.1. Market Trends
  5.2. Introduction
     5.2.1. Basis Point Share (BPS) Analysis by Region
     5.2.2. Y-o-Y Growth Projections by Region
  5.3. Venture Capital Investment Market Size and Volume Forecast by Region
     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 (MEA)
  5.4. Absolute $ Opportunity Assessment by Region
  5.5. Market Attractiveness/Growth Potential Analysis by Region
  5.6. Global Venture Capital Investment Demand Share Forecast, 2019-2026
6. North America Venture Capital Investment Market Analysis and Forecast
  6.1. Introduction
     6.1.1. Basis Point Share (BPS) Analysis by Country
     6.1.2. Y-o-Y Growth Projections by Country
  6.2. North America Venture Capital Investment Market Size and Volume Forecast by Country
     6.2.1. U.S.
     6.2.2. Canada
  6.3. Absolute $ Opportunity Assessment by Country
  6.4. Market Attractiveness/Growth Potential Analysis
     6.4.1. By Country
     6.4.2. By Product Type
     6.4.3. By Application
  6.5. North America Venture Capital Investment Demand Share Forecast, 2019-2026
7. Latin America Venture Capital Investment Market Analysis and Forecast
  7.1. Introduction
     7.1.1. Basis Point Share (BPS) Analysis by Country
     7.1.2. Y-o-Y Growth Projections by Country
     7.1.3. Latin America Average Pricing Analysis
  7.2. Latin America Venture Capital Investment Market Size and Volume Forecast by Country
      7.2.1. Brazil
      7.2.2. Mexico
      7.2.3. Rest of Latin America
   7.3. Absolute $ Opportunity Assessment by Country
  7.4. Market Attractiveness/Growth Potential Analysis
     7.4.1. By Country
     7.4.2. By Product Type
     7.4.3. By Application
  7.5. Latin America Venture Capital Investment Demand Share Forecast, 2019-2026
8. Europe Venture Capital Investment Market Analysis and Forecast
  8.1. Introduction
     8.1.1. Basis Point Share (BPS) Analysis by Country
     8.1.2. Y-o-Y Growth Projections by Country
     8.1.3. Europe Average Pricing Analysis
  8.2. Europe Venture Capital Investment Market Size and Volume Forecast by Country
     8.2.1. Germany
     8.2.2. France
     8.2.3. Italy
     8.2.4. U.K.
     8.2.5. Spain
     8.2.6. Russia
     8.2.7. Rest of Europe
  8.3. Absolute $ Opportunity Assessment by Country
  8.4. Market Attractiveness/Growth Potential Analysis
     8.4.1. By Country
     8.4.2. By Product Type
     8.4.3. By Application
  8.5. Europe Venture Capital Investment Demand Share Forecast, 2019-2026
9. Asia Pacific Venture Capital Investment Market Analysis and Forecast
  9.1. Introduction
     9.1.1. Basis Point Share (BPS) Analysis by Country
     9.1.2. Y-o-Y Growth Projections by Country
     9.1.3. Asia Pacific Average Pricing Analysis
  9.2. Asia Pacific Venture Capital Investment Market Size and Volume Forecast by Country
     9.2.1. China
     9.2.2. Japan
     9.2.3. South Korea
     9.2.4. India
     9.2.5. Australia
     9.2.6. Rest of Asia Pacific (APAC)
  9.3. Absolute $ Opportunity Assessment by Country
  9.4. Market Attractiveness/Growth Potential Analysis
     9.4.1. By Country
     9.4.2. By Product Type
     9.4.3. By Application
  9.5. Asia Pacific Venture Capital Investment Demand Share Forecast, 2019-2026
10. Middle East & Africa Venture Capital Investment Market Analysis and Forecast
  10.1. Introduction
     10.1.1. Basis Point Share (BPS) Analysis by Country
     10.1.2. Y-o-Y Growth Projections by Country
     10.1.3. Middle East & Africa Average Pricing Analysis
  10.2. Middle East & Africa Venture Capital Investment Market Size and Volume Forecast by Country
     10.2.1. Saudi Arabia
     10.2.2. South Africa
     10.2.3. UAE
     10.2.4. Rest of Middle East & Africa (MEA)
  10.3. Absolute $ Opportunity Assessment by Country
  10.4. Market Attractiveness/Growth Potential Analysis
     10.4.1. By Country
     10.4.2. By Product Type
     10.4.3. By Application
  10.5. Middle East & Africa Venture Capital Investment Demand Share Forecast, 2019-2026
11. Competition Landscape
  11.1. Global Venture Capital Investment Market: Market Share Analysis
  11.2. Venture Capital Investment Distributors and Customers
  11.3. Venture Capital Investment Market: Competitive Dashboard
  11.4. Company Profiles (Details: Overview, Financials, Developments, Strategy)
     11.4.1. Index Ventures
     11.4.2. Accel
     11.4.3. Benchmark
     11.4.4. Bessemer Venture Partners
     11.4.5. Andreessen Horowitz
     11.4.6. Founders Fund LLC
     11.4.7. Ggv Management L.L.C.
     11.4.8. Sequoia Capital O

Purchase Premium Report