According to the latest report by IMARC Group, titled “Venture Capital Investment Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2022-2027,” the global venture capital investment market size reached US$ 211.3 Billion in 2021. Venture capital investment is a funding mechanism through which capital is provided by venture capitalists to start-ups and small businesses. It provides growth opportunities, valuable guidance and expertise, building networks and connections to companies, and eliminates the obligation for repayment. It also offers above-average returns to investors and has become a remarkable source for raising capital for potential companies. At present, the demand for venture capital investment is escalating around the world, especially among countries with favorable regulatory frameworks.
We are regularly tracking the direct effect of COVID-19 on the market, along with the indirect influence of associated industries. These observations will be integrated into the report.
Global Venture Capital Investment Market Trends:
Venture capitalist (VC) firms financially support entrepreneurial activities for economic growth, as well as nurture and govern the expansion of small and medium-sized enterprises (SMEs). Moreover, these firms provide strategic assistance, introduction to potential partners, customers, and employees. Therefore, significant growth in the number of start-ups across the world is offering lucrative opportunities to market players operating in the industry. Besides this, increasing investments from banking institutions and mutual funds in venture capital are also contributing to the market growth. Moreover, the expansion of investment activities across diverse industry verticals, such as biotechnology, healthcare, agriculture and media and entertainment, is propelling the market growth. Other major factors, including the utilization of machine learning (ML) and algorithms by venture capitalists for identifying start-ups with higher growth potential and making better investment decisions, are boosting the market growth. Looking forward, the market value is projected to reach US$ 584.4 Billion by 2027, expanding at a CAGR of 20.1% during the forecast period (2022-2027).
- Based on the sector, the market has been segmented into software, pharma and biotech, media and entertainment, medical devices and equipment, medical services and systems, IT hardware, IT services and telecommunication, consumer goods and recreation, energy, and others.
- On the basis of the fund size, the market has been divided into under $50 M, $50 M to $100 M, $100 M to $250 M, $250 M to $500 M, $ 500 M to $1 B, and above $1 B.
- Based on the funding type, the market has been bifurcated into first-time venture and follow-on venture funding.
- Region-wise, the market has been categorized into North America, Asia Pacific, Europe and others.
- The competitive landscape of the market has been examined, with some of the key players being Accel, Andreessen Horowitz, Benchmark, Bessemer Venture Partners, First Round Capital, Founders Fund, Ggv Management L.L.C, Index Ventures LLP, Sequoia Capital Operations LLC, and Union Square Ventures LLC.
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