Venture Capital Market Report 2024

This Venture Capital market report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

The venture capital market size has grown rapidly in recent years. It will grow from $338.37 billion in 2023 to $373.37 billion in 2024 at a compound annual growth rate (CAGR) of 10.2%. The growth observed during the historical period can be credited to favorable economic conditions, strong demand for new products and services, successful business exits, globalization, supportive government policies, and various incentives.

The venture capital market size is expected to see rapid growth in the next few years. It will grow to $553.49 billion in 2028 at a compound annual growth rate (CAGR) of 10.3%. The anticipated growth during the forecast period can be attributed to trends in sustainability and ESG, changes in consumer behavior, rising global investment, evolving regulations, and the expansion and reorganization of venture capital funds. Key trends expected to influence this period include technological innovation, digital transformation, advancements in data analytics and AI, fintech developments, and green technology.

The growth of the venture capital market is expected to be significantly driven by the increasing number of startups. Startups are newly established entities aiming to develop innovative products or services, often characterized by their potential for rapid growth. Factors contributing to the rise in startups include reduced entry barriers, accessible funding, a burgeoning entrepreneurial culture, and supportive ecosystems. Venture capital plays a crucial role by providing essential funding and support, which allows these startups to scale quickly, innovate, and bring their offerings to market. For example, according to The Greater Birmingham Chambers of Commerce, new company registrations in the UK reached 900,006 in 2023, up from 805,141 in 2022, marking an 11.8% increase. This surge has brought the total number of registered companies in the UK to a record 5,476,772. This trend is likely to further boost the venture capital market.

Key players in the venture capital sector are increasingly forming strategic partnerships to enhance their investment opportunities, utilize complementary expertise, and accelerate the growth of their portfolio companies. A strategic partnership involves a collaborative relationship where organizations combine resources and efforts to achieve shared objectives. For instance, in December 2023, Nokia Corporation, a Finland-based company in telecommunications, IT, and consumer electronics, teamed up with America’s Frontier Fund (AFF), Roadrunner Venture Studios (RVS), and Celesta Capital. This partnership aims to advance the commercialization of Nokia Bell Labs’ cutting-edge technologies, focusing on areas such as 5G/6G, semiconductor design, AI, sensors, and quantum computing. AFF and RVS will drive venture development and investment, while Celesta Capital will support the scaling and acceleration of Nokia-backed ventures. Nokia Bell Labs, known for its significant technological advancements such as the transistor and solar cell, will lead this initiative.

In June 2024, General Catalyst, a US-based venture capital firm known for its early-stage and transformative investments, acquired Venture Highway, though the amount was undisclosed. This acquisition is intended to strengthen General Catalyst’s strategic presence in the Indian market and enhance its ability to identify and support promising technology ventures, thus expanding its global reach and fostering innovation across various sectors. Venture Highway, an Indian venture capital firm, focuses on early-stage investments in innovative technology and scalable business models across diverse industries.

Major companies operating in the venture capital market are Sequoia Capital Operations LLC, Insight Partners LLC, Tiger Global Management LLC, New Enterprise Associates Inc., Accel Partners LLC, IDG Capital Partners, General Catalyst Group LLC, Benchmark Capital Partners L.P., Seedcamp LLP, Index Ventures LLP, Kleiner Perkins Caufield & Byers LLC, GGV Capital LLC, Greylock Partners LLC, Healthcare Royalty Partners LLC, Redpoint Ventures LLC, HV Holtzbrinck Ventures Adviser GmbH, AAC Capital Partners Limited, Balderton Capital LLP, Nexus Venture Partners LLC, DST Global Ltd., 360 Capital Partners S.A., LocalGlobe LLP, Point Nine Management GmbH, Atlantic Labs GmbH, Union Square Ventures LLC.

North America was the largest region in the venture capital market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the venture capital market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the venture capital market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Venture capital is a type of private equity investment where investors offer funding to early-stage or rapidly growing companies that show the potential for high returns. This funding is usually allocated to support the development, growth, or commercialization of innovative products or services, and in return, investors typically gain equity shares in the company.

Venture capital can be categorized into local and international investors. Local investors are individuals or organizations within a specific region who invest in nearby startups and businesses, aiming to promote local economic growth and innovation. Venture capital funds vary in size, ranging from under $50 million to over $1 billion, and are invested across various industries including real estate, financial services, food and beverages, healthcare, transportation and logistics, information technology (IT) and IT-enabled services (ITeS), education, and more.

The venture capital market research report is one of a series of new reports that provides venture capital market statistics, including venture capital industry global market size, regional shares, competitors with an venture capital market share, detailed venture capital market segments, market trends and opportunities, and any further data you may need to thrive in the venture capital industry. This venture capital market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The venture capital market includes revenues earned by entities through management services, advisory services, and consulting services. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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