Venture Capital
Companies in this industry invest capital in new business ventures. Major venture capital firms include Accel, Kleiner Perkins, New Enterprise Associates, and Sequoia Capital (all based in the US), as well as Amadeus Capital Partners (UK), Globis Capital Partners (Japan), Nexus Venture Partners (India), and Singulariteam and Viola Ventures (both based in Israel).
Globally, venture capital investment increased to $671 billion for 2021 as compared to the prior year's revenues of $347 billion, according to KPMG. Top countries include India, Germany, France, and the UK, among other countries, according to The Global Economy.
The US venture capital industry includes about 8,500 firms and made about $30 billion.
Competitive Landscape
Demand is driven primarily by the pace of technological innovation and the number of companies created to commercialize new technologies. The profitability of individual companies depends on successfully choosing and managing a portfolio of investments. Large firms have advantages in attracting capital, developing expertise in multiple technology markets, and funding large deals. Small companies can compete effectively by concentrating on specific market sectors or geographic areas.
Individual, or angel, investors, and large companies with strategic interests in early-stage companies are also sources of new venture funding. Corporate venture activity has increased in recent years, as groups such as Google Ventures and Intel Capital and financial institutions such as Goldman Sachs have invested in startups. Corporate venture capital (CVC) participation saw a 10% decrease quarter-over-quarter, according to CB Insights.
Products, Operations & Technology
Venture capital companies provide money to young, rapidly growing companies with promising new products or services in exchange for ownership (equity)
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Industry Forecast
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Glossary of Acronyms