2021 set a new record for venture capital investments in the United States, amounting to approximately 345 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 170.6 billion U.S. dollars, which was a significant decline when compared to the previous year. Which sector was the most active in Q1 2021? The number of venture capital investment deals completed in the U.S. also reached its highest point in 2021, peaking at 19,025. In the first quarter of 2021, the largest amount of venture capital in the U.S. went to the internet industry, with the healthcare industry lagging more than 14 billion U.S. dollars behind. What impact did the COVID-19 pandemic have on VC? The peak in VC deal value can be attributed to the increase in funding that went to the healthcare sector in 2020 as a result of the COVID-19 pandemic. The amount of VC funding that went to the healthcare information technology (HIT) sector globally, for instance, grew by more than 40 percent from 2019 to 2020.

United States Venture Capital Market segmented by investments (banking & financial services, healthcare, telecommunications, government agencies, and others), stage of investment (seed stage, startup stage, first stage, expansion stage, and bridge stage), and major states (California, New York, Massachusetts, Washington, and others). The report offers market size and forecasts for the United States Venture Capital Market in value (USD million) for all the above segments.

In 2023, the state that had the highest value of venture capital (VC) investment in the United States was California. The value of VC investments made in California amounted to over 81 billion U.S. dollars, followed by New York with nearly 21.65 billion U.S. dollars. Massachusetts secured the third position with around 16 billion U.S. dollars worth of investment. In terms of deal volume, California also led the U.S. market as the state with the highest number of venture capital deals closed. How has venture capital investment in the U.S. changed over time? Over the course of the last five years, the value of venture capital investment in the United States has generally increased, albeit with some fluctuation. Despite the effects of the COVID-19 pandemic that have impacted economies worldwide, VC investments amounted to a value of around 130 billion U.S. dollars in 2020 – a significant increase from the value obtained in the previous year. Which industries received the most VC funding? In the United States, the value of venture capital investment was highest in the software industry in 2023, with deal value of over 66 billion U.S. dollars. This was followed by the commercial products and service industry, and then the pharma and biotech sector.

Global venture capital investment increased considerably during the pandemic, going from 66.4 billion U.S. dollars in the third quarter of 2019 to a peak of nearly 200 billion U.S. dollars in the fourth quarter of 2021. However, with the onset of the global recession in 2022 adn 2023, VC investment decreased again, reaching approximately 73 billion U.S. dollars in the fourth quarter of 2023.

According to Cognitive Market Research, the global Venture Capital Market size is USD 309541.2 million in 2024. It will expand at a compound annual growth rate (CAGR) of 5% from 2024 to 2031.

North America held the major market share for more than 40% of the global revenue with a market size of USD 123816.48 million in 2024 and will grow at a compound annual growth rate (CAGR) of 3.20% from 2024 to 2031.
Europe accounted for a market share of over 30% of the global revenue with a market size of USD 92862.36 million.
Asia Pacific held a market share of around 23% of the global revenue with a market size of USD 71194.48 million in 2024 and will grow at a compound annual growth rate (CAGR) of 7.00% from 2024 to 2031.
Latin America had a market share of around 5% of the global revenue with a market size of USD 15477.06 million in 2024 and will grow at a compound annual growth rate (CAGR) of 4.40% from 2024 to 2031.
Middle East and Africa had a market share of around 2% of the global revenue and was estimated at a market size of USD 6190.82 million in 2024 and will grow at a compound annual growth rate (CAGR) of 4.70% from 2024 to 2031.
Local investors have the highest Venture Capital Market revenue share in 2024.

Market Dynamics of Venture Capital Market

Key Drivers for the Venture Capital Market

Increasing Number Of High-growth Startups Seeking Funding Drives Market Growth

The increasing number of high-growth startups seeking funding is significantly fueling the demand for venture capital. As entrepreneurial ventures increase, driven by innovative ideas and disruptive technologies, there is a corresponding surge in the need for substantial capital to scale these businesses. Startups, particularly in tech-driven and emerging sectors, are experiencing rapid growth and require substantial financial backing to expand operations, develop products, and capture market share. Venture capital firms are uniquely positioned to meet this demand, offering not only the necessary funding but also strategic guidance and networking opportunities essential for startup success. This dynamic creates a symbiotic relationship where startups gain the resources they need to thrive while venture capital firms benefit from high-potential investment opportunities. The robust pipeline of ambitious, high-growth startups thus acts as a catalyst, driving sustained interest and investment activity in the venture capital market, further enhancing its growth and development.

Rising Global Entrepreneurship Rates Increases Market Demand

Rising global entrepreneurship rates are significantly driving the need for venture capital to support new businesses. As more individuals worldwide pursue entrepreneurial ventures, the demand for substantial financial resources to transform innovative ideas into viable businesses is escalating. This entrepreneurial surge is particularly evident in emerging markets where access to traditional funding sources is limited. Venture capital firms play a crucial role in bridging this funding gap, providing not only the capital necessary for startup growth but also offering strategic guidance and valuable industry connections. The increased global entrepreneurial activity creates a fertile environment for venture capital investments, as these new businesses often have high growth potential and the ability to disrupt established industries. Consequently, the proliferation of entrepreneurial ventures worldwide underscores the critical role of venture capital in fostering innovation, driving economic growth, and supporting the next generation of successful businesses. This trend is a key driver behind the expanding venture capital market, emphasizing its importance in the global economy.

Restraint Factor for the Venture Capital Market

High Risk Of Failure Among Startups To Hinder Market Growth

The high risk of failure among startups is a significant factor restraining the growth of the venture capital market. Despite the allure of high returns, the inherent uncertainty and volatility associated with early-stage companies present considerable challenges for venture capitalists. Many startups fail to achieve profitability or even reach the market, often due to reasons such as insufficient market demand, operational inefficiencies, or competitive pressures. This high failure rate can lead to substantial financial losses for investors, reducing their willingness to commit capital to ...

In 2024, the United States was the leading country worldwide for venture capital (VC) investments. VC invested in the U.S. amounted to nearly 200 billion U.S. dollars, far higher than the value of VC invested in China, which came second in the ranking. With a value of approximately 16 billion U.S. dollars, the United Kingdom (UK) ranked third worldwide and first in Europe for VC investments in 2024.

The Report Covers North America Venture Capital Trends and it is Segmented by Investments in Countries (USA, Canada, Mexico), by Deal Size and Stage of Investment (Angel/Seed Investment, Early-stage Investment, and Late-Stage Investment), and by the Industry (Fintech, Pharma, Consumer Goods, Industrial/Energy, IT Hardware & Services, and Other Industries)

Global climate tech venture capital funding has experienced significant growth since 2010, rising to 70 billion U.S. dollars in 2022. Climate tech VC funding for FY 2023 was forecast at just shy of 50 billion U.S. dollars.

Indonesia Venture Capital: Assets: Financing/ Investment of Venture Capital: Investment in Shares data was reported at 5,352.213 IDR bn in Oct 2024. This records an increase from the previous number of 5,319.166 IDR bn for Sep 2024. Indonesia Venture Capital: Assets: Financing/ Investment of Venture Capital: Investment in Shares data is updated monthly, averaging 1,962.681 IDR bn from Dec 2014 (Median) to Oct 2024, with 119 observations. The data reached an all-time high of 6,633.161 IDR bn in Apr 2023 and a record low of 954.573 IDR bn in Aug 2015. Indonesia Venture Capital: Assets: Financing/ Investment of Venture Capital: Investment in Shares data remains active status in CEIC and is reported by Bank Indonesia. The data is categorized under Indonesia Premium Database’s Monetary – Table ID.KAI016: Financial System Statistics: Venture Capital Sector.

Indonesia Venture Capital: Assets: Financing/ Investment of Venture Capital data was reported at 13,172.300 IDR bn in Nov 2024. This records a decrease from the previous number of 13,405.213 IDR bn for Oct 2024. Indonesia Venture Capital: Assets: Financing/ Investment of Venture Capital data is updated monthly, averaging 11,941.414 IDR bn from Dec 2014 (Median) to Nov 2024, with 120 observations. The data reached an all-time high of 18,037.251 IDR bn in Mar 2023 and a record low of 6,219.221 IDR bn in Mar 2017. Indonesia Venture Capital: Assets: Financing/ Investment of Venture Capital data remains active status in CEIC and is reported by Bank Indonesia. The data is categorized under Indonesia Premium Database’s Monetary – Table ID.KAI016: Financial System Statistics: Venture Capital Sector.

This data is from the NVCA yearbook, which includes a comprehensive analysis of U.S. venture capital industry statistics.

The median size of venture capital deals in 2023 was lower than in the previous years, except for the angel and seed stage. In 2023, the median deal size of later stage VC-backed companies amounted to 5.1 million U.S. dollars, down from 7.9 million U.S. dollars in the previous year.

Indonesia Venture Capital: Revenues: Non-Operational data was reported at 300.986 IDR bn in Oct 2024. This records an increase from the previous number of 256.358 IDR bn for Sep 2024. Indonesia Venture Capital: Revenues: Non-Operational data is updated monthly, averaging 111.903 IDR bn from Mar 2016 (Median) to Oct 2024, with 104 observations. The data reached an all-time high of 532.203 IDR bn in Dec 2016 and a record low of -1.946 IDR bn in Jan 2019. Indonesia Venture Capital: Revenues: Non-Operational data remains active status in CEIC and is reported by Bank Indonesia. The data is categorized under Indonesia Premium Database’s Monetary – Table ID.KAI016: Financial System Statistics: Venture Capital Sector.

Venture capital invested of Virginia plummeted by 29.53% from 3,103.90 million USD in 2022 to 2,187.47 million USD in 2023. Since the 125.63% surge in 2021, venture capital invested dropped by 14.91% in 2023.

Indonesia Venture Capital: Revenues: Operational: Income from Operating Activities: Interest Income from Investment through Convertible Bonds data was reported at 14.954 IDR bn in Nov 2024. This records an increase from the previous number of 13.962 IDR bn for Oct 2024. Indonesia Venture Capital: Revenues: Operational: Income from Operating Activities: Interest Income from Investment through Convertible Bonds data is updated monthly, averaging 2.761 IDR bn from Mar 2016 (Median) to Nov 2024, with 96 observations. The data reached an all-time high of 27.028 IDR bn in Sep 2020 and a record low of 0.013 IDR bn in Oct 2017. Indonesia Venture Capital: Revenues: Operational: Income from Operating Activities: Interest Income from Investment through Convertible Bonds data remains active status in CEIC and is reported by Bank Indonesia. The data is categorized under Indonesia Premium Database’s Monetary – Table ID.KAI016: Financial System Statistics: Venture Capital Sector.

Indonesia Venture Capital: Revenues data was reported at 4,876.595 IDR bn in Nov 2024. This records an increase from the previous number of 4,331.455 IDR bn for Oct 2024. Indonesia Venture Capital: Revenues data is updated monthly, averaging 1,407.519 IDR bn from Mar 2016 (Median) to Nov 2024, with 105 observations. The data reached an all-time high of 5,074.730 IDR bn in Dec 2023 and a record low of 125.625 IDR bn in Jan 2017. Indonesia Venture Capital: Revenues data remains active status in CEIC and is reported by Bank Indonesia. The data is categorized under Indonesia Premium Database’s Monetary – Table ID.KAI016: Financial System Statistics: Venture Capital Sector.

The total value of venture capital investments in European startups skyrocketed in 2021, peaking at 113 billion U.S. dollars. In 2022 and 2023, however, VC investments decreased significantly, reaching 58.5 billion U.S. dollars.

This data is from the NVCA yearbook, which includes a comprehensive analysis of U.S. venture capital industry statistics. Values in USD million.

Financial overview and grant giving statistics of Hawaii Venture Capital Association

In the United States, software companies attracted the largest share of venture capital (VC) investment in 2023. Nearly 67 billion U.S. dollars of VC funds were invested in software companies, and the sector significantly outpaced others. The commercial products and services sector was the second-highest recipient of the investments, with around 27.46 billion U.S. dollars. Meanwhile, the pharma and biotech sector achieved a deal of 21.36 billion U.S. dollars, securing the third position.