(MENAFN- Alliance News) The global venture capital investment market revenue was around US$ 208.3 billion in 2022 and is estimated to reach US$ 1068.5 billion by 2031, growing at a compound annual growth rate (CAGR) of 20.1% during the forecast period from 2023 to 2031.
Venture capital investment is a classification of private equity investment that includes funding in companies that also mandate capital. Business usually demands capital for initial expansion or setup. Venture capital investing is also known as the idea phase because it can be done at an even earlier stage. Venture capital investing tasks are generally run by private equity funds and with each fund operating, a portfolio of projects it specializes in.
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Factors Influencing Market Growth
The increasing technology sector is a major driving factor for the venture capital investment market. The two technologies that develop the most corporate venture capital investment are cloud technology and artificial intelligence (AI).
The time-consuming process harms venture capital because it takes many years for any startup to exit from its IPO. The longer the holding period of investments is the more negative implications it has on the capital investment performance. This means greater stress on the entrepreneurs to return the capital punctually.
The necessity for an extensive due persistence process is considered one of the major factors that hinders the growth of the market.
The advancement in technology in the field of venture capital investment is expected to deliver lucrative and major opportunities that will help in the growth of the venture capital investment market in the approaching years.
Impact of COVID-19
The impact of the COVID-19 pandemic has influenced every part of global business, including venture capital investment. COVID-19 has created less swiftness in the investment pool and also an extra risk aversion as venture capital investment activity has been lowered on a global scale. Due to COVID-19, many small and medium businesses have been stopped and most of the businesses have been liquidated.
Also, the volatility of the foreign exchange market, the portfolios valuation deduction, and problems with current investments have all contributed to a worsening of the financial performance assets of SMEs.
Similarly, mergers, Initial Public Offers (IPO), and acquisitions are stalled in the global market. Therefore, seed venture capital investment has constantly been denied due to the look of investors for mature and well-established companies for their investments. Due to this, the venture capital investment market has been negatively impacted by COVID-19.
Regional Analysis
North America has dominated the highest venture capital investment market share in 2022. This is also attributed to the fact that the market is currently developing as a consequence of a boost in financial institutions, startups, mutual funds, and venture capital firms, as well as the expansion of the overall market. The growth in investment activities across a variety of sector verticals that includes biotechnology, healthcare, agriculture, and media & entertainment, are supporting venture capital investment market growth.
Leading Companies
The leading prominent companies profiled in the global venture capital investment market are:
Accel Partners Venture
Agoranov
Balderton Capital (UK) LLP
Battery Ventures
Caixa Capital Risc
Cherry Ventures
Eurazeo
Greylock Partners
HoxtonVentures LLP
Index Ventures
Lakestar
Seedcamp
Sequoia
Target Global
Union Square Ventures
Park Capital
GetVantage
Other prominent key players
Segmentation Outline
The global venture capital investment market segmentation focuses on Funding Type, Fund Size, Industry Vertical, and Region
Segmentation based on Funding Type
First-Time Venture Funding
Follow-on Venture Funding
Segmentation based on Fund Size
Under US $50 M
US $50 M to US $100 M
US $100 M to US $250 M
US $250 M to US $500 M
US $500 M to US $1 B
Above US $1 B
Segmentation based on Industry Vertical
Computer and Consumer Electronics
Communications
Life Sciences
Energy
Others
Segmentation based on Region
North America
The U.S.
Canada
Europe
UK
Germany
France
Italy
Spain
Netherlands
Rest of Europe
Asia-Pacific
China
Japan
India
Australia
South Korea
Singapore
Rest Of Asia-Pacific
LAMEA
Latin America
Middle East
Africa
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