In 2019, London saw *** billion GBP of venture capital (VC) investment in tech companies, whilst in Berlin, the VC investment equated to *** billion GBP. In the UK, in addition to London, Cambridge, Bristol, Edinburgh, and Oxford also make the top 20 European cities for tech VC investment.

As of September 2019, Mexico City concentrated around the ** percent (**) of the venture capital funds based in Mexico. The state of Nuevo León ranked second with a total of ** active venture capital funds. In the first half of 2019, the value of venture capital investments in Mexico amounted to approximately *** million U.S. dollars.

Global venture capital investment increased considerably during the pandemic, going from **** billion U.S. dollars in the third quarter of 2019 to a peak of nearly *** billion U.S. dollars in the fourth quarter of 2021. However, with the onset of the global recession in 2022 and 2023, VC investment decreased again, reaching approximately ** billion U.S. dollars in the fourth quarter of 2023.

As of September 2019, almost ** percent of the venture capital investments made in Mexico was raised by Mexican funds. Mexico City concentrated nearly ** percent of the venture capital funds operating in the country.

In the financial year 2019/2020, Berlin was the leading city for venture capital investments in fintech startups in Germany, receiving approimately *** billion euros. Munich and Düsseldorf ranked second and third, with *** and *** million euros respectively.

The United Kingdom (UK) is the leading European country in terms of venture capital fundraising. Since 2016, the UK consistently recorded the highest value of VC fundraising in Europe: In 2024, over 100 billion U.S. dollars were raised there, nearly three times as much as in Sweden, which came second in the ranking for VC fundraising among European countries.

2021 set a new record for venture capital investments in the United States, amounting to approximately *** billion U.S. dollars, nearly twice as much as the previous year. Venture capital is defined as temporary equity investment in young, innovative, non-listed companies that stand out on the market. Although the companies lack the current earning power, they have above average growth potential, which makes them an attractive investment opportunity. In 2023, it was ***** billion U.S. dollars, which was a significant decline when compared to the previous year.

Funding for artificial intelligence companies in the United States has increased exponentially in recent years, growing from a little under *** million U.S. dollars in 2011 to around **** billion in 2019. Overall worldwide funding in AI startups amounted to approximately **** billion U.S. dollars in the same year. Artificial intelligence refers to the creation of intelligent hardware or software able to replicate human behaviors such as learning and problem solving.

Machine learning applications most funded   

Companies focusing on machine learning applications are the most funded in the artificial intelligence (AI) market. Machine learning application companies raised ** billion U.S. dollars in cumulative funding as of September 2019. Other well-funded AI categories include machine learning platforms as well as computer vision applications and platforms. Intel Capital is the leading AI investor with a total of ** investments in AI companies as of April 2021. *** Startups, NEA and Y Combinator also rank high in terms of AI investment deals.

There were around ***** million U.S. dollars worth of venture capital investments in Brazilian startups during the first semester of 2020. About ***** million U.S. dollars (or **** percent) of the total investment value was collected in São Paulo. Rio de Janeiro was home to the country's second largest amount of venture capital investments, receiving **** million U.S. dollars (or around *** percent) of the all the investments. In 2019, these two cities were among the leading financial centers in Latin America and the Caribbean.

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Venture Capital Investment Market Size 2025-2029

The venture capital investment market size is forecast to increase by USD 2920.2 billion, at a CAGR of 37.9% between 2024 and 2029.

The Venture Capital (VC) investment market is experiencing significant growth, particularly in the biotech sector, driven by advancements in technology and innovation. This trend is fueled by an increasing number of high-net-worth individuals (HNWIs) worldwide, who are seeking to diversify their portfolios and invest in promising startups. However, this market faces challenges, including foreign exchange volatility, which can impact the returns on investments made across borders. As HNWIs continue to invest in VC funds, they bring not only capital but also expertise and industry connections, further enhancing the potential for successful ventures.
Simultaneously, biotech companies, with their innovative solutions, are attracting substantial VC interest, presenting significant opportunities for growth and returns. Navigating foreign exchange risks and identifying promising biotech startups will be crucial for VC firms seeking to capitalize on these trends and outperform their competitors.

What will be the Size of the Venture Capital Investment Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
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The venture capital (VC) investment market continues to evolve, shaped by dynamic market conditions and diverse sector applications. Dividend yields and capital gains remain key drivers for investors, as they seek to maximize returns. Big data and growth hacking are increasingly integral to investment theses, enabling industry analysis and informed decision-making. Limited partnerships (LPs) and funds collaborate, with GPs overseeing operations and risk management. Deal sourcing and due diligence are essential components of the investment process, ensuring portfolio companies align with the fund's objectives. Revenue growth and marketing strategies are critical for portfolio companies, as they aim to scale and attract investment.

Term sheets outline investment details, while advisory boards provide strategic guidance. Financial modeling and cash flow management are essential for effective fund management. Technology infrastructure, including AI, cloud computing, and blockchain technology, underpins innovation and growth. Joint ventures and technology licensing offer opportunities for collaboration and expansion. Sales strategy and burn rate analysis help optimize portfolio performance. Private equity and data analytics provide valuable insights for investment opportunities. Stock options and Series A and B funding rounds offer potential for significant returns. Legal agreements and intellectual property (IP) rights are crucial for protecting investments and ensuring long-term success.

How is this Venture Capital Investment Industry segmented?

The venture capital investment industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Sector

  Software
  Pharmaceutical and biotechnology
  Media and entertainment
  Medical devices and equipments
  Others


Type

  First-time venture funding
  Follow-on venture funding


Variant

  Institutional Investors
  Corporate venture capital
  Private equity firms
  Angel investors
  Others


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    Italy
    The Netherlands
    UK


  APAC

    China
    India
    Japan


  Rest of World (ROW)

By Sector Insights

The software segment is estimated to witness significant growth during the forecast period.

The market has witnessed significant activity in the software industry, with a focus on disruptive technologies such as Artificial Intelligence (AI), Machine Learning (ML), and Blockchain technology. VC firms have invested billions of dollars in these areas, with some companies achieving unicorn status. The software sector includes application software, system infrastructure software, software as a service (SaaS), operating systems, database software, and analytics software. The growing number of entrepreneurs and businesses, estimated to be over 450 million and 300 million, respectively, is fueling the growth of the software segment in the market. VC funds have been actively involved in Series A funding, providing capital for early-stage startups, and Series B funding, for growth-stage companies.

Limited partnerships (LPs) have been essential in providing capital for these funds. Risk management is a critical factor in venture capital investment, with due diligence, financial modeling, and market analysis being crucial componen

China VC: Value of Investment: by Industry: Manufacturing data was reported at 240.870 USD mn in Mar 2020. This records a decrease from the previous number of 800.680 USD mn for Sep 2019. China VC: Value of Investment: by Industry: Manufacturing data is updated quarterly, averaging 57.170 USD mn from Mar 2006 (Median) to Mar 2020, with 41 observations. The data reached an all-time high of 800.680 USD mn in Sep 2019 and a record low of 0.000 USD mn in Mar 2006. China VC: Value of Investment: by Industry: Manufacturing data remains active status in CEIC and is reported by ChinaVenture. The data is categorized under China Premium Database’s Private Equity – Table CN.VCI: Venture Capital: Value of Investment by Industry.

Venture capital investments in Belgium more than doubled in 2018, and continued to grow by around *********** in 2019. Venture capital mostly refers to money invested into young companies that are not listed on the stock exchange. Start-up investments are the most well-known part of this, but this can also include (angel) seed investments or early stage ventures. Typically, Brussels is considered to have a smaller start-up scene than other European capital cities. The company with the biggest finance round in Belgium was Collibra, a data intelligence company that received an investment of *********** U.S. dollars in 2019 from CapitalG (an investment branch of Google). This made Collibra Belgium's first-ever "unicorn", a start-up company with a market value of more than *********** U.S. dollars.

China VC: Value of Investment data was reported at 5.359 USD bn in Mar 2020. This records a decrease from the previous number of 13.348 USD bn for Dec 2019. China VC: Value of Investment data is updated quarterly, averaging 1.558 USD bn from Mar 2006 (Median) to Mar 2020, with 57 observations. The data reached an all-time high of 28.819 USD bn in Sep 2018 and a record low of 211.490 USD mn in Jun 2009. China VC: Value of Investment data remains active status in CEIC and is reported by ChinaVenture. The data is categorized under China Premium Database’s Private Equity – Table CN.VCI: Venture Capital: Value of Investment.

China VC: Value of Investment: by Industry: Telecom & Increment data was reported at 8.650 USD mn in Mar 2020. This records an increase from the previous number of 3.000 USD mn for Sep 2019. China VC: Value of Investment: by Industry: Telecom & Increment data is updated quarterly, averaging 54.500 USD mn from Mar 2006 (Median) to Mar 2020, with 41 observations. The data reached an all-time high of 1.339 USD bn in Mar 2018 and a record low of 3.000 USD mn in Sep 2019. China VC: Value of Investment: by Industry: Telecom & Increment data remains active status in CEIC and is reported by ChinaVenture. The data is categorized under China Premium Database’s Private Equity – Table CN.VCI: Venture Capital: Value of Investment by Industry.

China VC: Value of Investment: by Industry: Tourism data was reported at 31.390 USD mn in Mar 2020. This records a decrease from the previous number of 324.550 USD mn for Sep 2019. China VC: Value of Investment: by Industry: Tourism data is updated quarterly, averaging 9.680 USD mn from Sep 2007 (Median) to Mar 2020, with 27 observations. The data reached an all-time high of 324.550 USD mn in Sep 2019 and a record low of 0.000 USD mn in Jun 2010. China VC: Value of Investment: by Industry: Tourism data remains active status in CEIC and is reported by ChinaVenture. The data is categorized under China Premium Database’s Private Equity – Table CN.VCI: Venture Capital: Value of Investment by Industry.

Global venture capital investments in the fintech sector more than doubled in 2021, reaching over *** billion U.S. dollars, up from **** billion U.S. dollars the previous year. However, in the following years, VC investments declined significantly, falling to **** billion U.S. dollars in 2024. While this represented a decrease from the previous year, the rate of decline was notably slower than in prior years.

China VC: Value of Investment: by Industry: IT data was reported at 824.810 USD mn in Mar 2020. This records a decrease from the previous number of 1.121 USD bn for Sep 2019. China VC: Value of Investment: by Industry: IT data is updated quarterly, averaging 150.990 USD mn from Mar 2006 (Median) to Mar 2020, with 41 observations. The data reached an all-time high of 4.443 USD bn in Mar 2016 and a record low of 13.970 USD mn in Sep 2010. China VC: Value of Investment: by Industry: IT data remains active status in CEIC and is reported by ChinaVenture. The data is categorized under China Premium Database’s Private Equity – Table CN.VCI: Venture Capital: Value of Investment by Industry.

Cash-and-Equivalents Time Series for Stepstone Group Inc. StepStone Group Inc. is a private equity and venture capital firm specializing in primary, direct, fund of funds, secondary direct, and secondary indirect investments. For direct investment, it seeks to invest in private debt, venture debt, incubation, mezzanine, distressed/vulture, seed/startup, early venture, mid venture, late venture, emerging growth, later stage, turnaround, growth capital, industry consolidation, recapitalization, buyout investments in mature and middle market companies. It prefers to invest in natural resources, technology, healthcare, services, materials, manufacturing, consumer durables, apparel, hotels, restaurants and leisure, media, retailing, power, utilities consumer staples, financials, telecommunication services, clean energy/renewables, transport, social, natural capital, infrastructure, corporate, real estate, credit and real asset. The firm invests globally with a focus on United States, North America, Europe, Asia, Latin America, Middle East, Africa, Brazil, Mexico, Argentina, Colombia, New Zealand, China, India, Korea, Japan, Taiwan, and Australia region. The firm invests between 5% and 40% in emerging markets. For fund of fund investment, it seeks to invest in private equity funds, venture capital funds, Special situation funds, Real estate funds, Infrastructure funds, mezzanine funds, and turnaround/distressed funds. It considers investments in both domestic and international funds. It also seeks to make co-investments and follow-on investments and considers partial interests in funds. The firm seeks to make minority and majority investments. StepStone Group Inc. was founded in 2007 and is based in New York, New York with additional offices across North America, South America, South Korea, Europe, Australia and Asia.

China VC: Value of Investment: by Industry: Finance data was reported at 257.740 USD mn in Mar 2020. This records a decrease from the previous number of 1.996 USD bn for Sep 2019. China VC: Value of Investment: by Industry: Finance data is updated quarterly, averaging 10.000 USD mn from Mar 2006 (Median) to Mar 2020, with 35 observations. The data reached an all-time high of 3.199 USD bn in Sep 2018 and a record low of 0.000 USD mn in Jun 2010. China VC: Value of Investment: by Industry: Finance data remains active status in CEIC and is reported by ChinaVenture. The data is categorized under China Premium Database’s Private Equity – Table CN.VCI: Venture Capital: Value of Investment by Industry.

China VC: Value of Investment: by Industry: Education & Human Resource data was reported at 522.370 USD mn in Mar 2020. This records an increase from the previous number of 373.030 USD mn for Sep 2019. China VC: Value of Investment: by Industry: Education & Human Resource data is updated quarterly, averaging 42.500 USD mn from Mar 2006 (Median) to Mar 2020, with 37 observations. The data reached an all-time high of 907.510 USD mn in Sep 2018 and a record low of 0.000 USD mn in Sep 2010. China VC: Value of Investment: by Industry: Education & Human Resource data remains active status in CEIC and is reported by ChinaVenture. The data is categorized under China Premium Database’s Private Equity – Table CN.VCI: Venture Capital: Value of Investment by Industry.