Market Insights Financial Capital Raising Traditional Capital Raising

Venture Capital - United States

United States

Total Capital Raised in the Venture Capital market market in the United States is forecasted to reach €125.30bn in 2024.
Later Stage leads the market with a projected market volume of €67.60bn in 2024.
In global comparison, the United States will generate the most Capital Raised (€125.30bn in 2024).
The United States Venture Capital market is experiencing a surge in funding for tech startups, particularly in Silicon Valley and New York City.

Key regions: Europe, United States, United Kingdom, Australia, Brazil

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Analyst Opinion

The Venture Capital market in United States has been experiencing significant growth and development in recent years.

Customer preferences: Investors in the United States have shown a strong preference for investing in startups and early-stage companies, particularly in the technology sector. This is due to the potential for high returns on investment and the opportunity to be part of innovative and disruptive businesses.

Trends in the market: One of the key trends in the Venture Capital market in United States is the increasing number of mega-deals. These are large investment rounds, typically exceeding $100 million, that are being raised by startups. This trend is driven by the growing interest of institutional investors, such as pension funds and sovereign wealth funds, in the Venture Capital asset class. These investors are seeking higher returns in a low-interest rate environment and are attracted to the potential for significant capital appreciation offered by startups. Another trend in the market is the rise of corporate venture capital. Established companies are increasingly setting up their own venture capital arms to invest in startups that align with their strategic goals. This allows them to gain exposure to innovative technologies and business models, as well as potentially acquire promising startups in the future. This trend is particularly prevalent in industries such as technology, healthcare, and automotive.

Local special circumstances: The United States has a highly developed ecosystem for startups and entrepreneurship, which has contributed to the growth of the Venture Capital market. The presence of world-class universities, research institutions, and technology hubs such as Silicon Valley and New York City has created a fertile ground for innovation and the emergence of high-growth startups. Additionally, the availability of experienced and successful entrepreneurs who can act as mentors and advisors to startups has further fueled the growth of the Venture Capital market.

Underlying macroeconomic factors: The strong performance of the United States economy has also played a role in the development of the Venture Capital market. The country has experienced a period of sustained economic growth, low unemployment rates, and favorable business conditions, which have attracted both domestic and foreign investors. Additionally, the availability of cheap capital from low-interest rates and quantitative easing by central banks has made it easier for startups to raise funding from Venture Capital firms. In conclusion, the Venture Capital market in United States is experiencing significant growth and development due to customer preferences for investing in startups, the emergence of mega-deals and corporate venture capital, the presence of a highly developed startup ecosystem, and favorable macroeconomic conditions. These factors are likely to continue driving the growth of the Venture Capital market in the United States in the foreseeable future.

Methodology

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on the amount of capital raised, the average of deal size and the number of deals.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use data from OECD, annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, CPI, number of small and medium-sized enterprises (SME), new businesses registered (number) . This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.