Market Insights Financial Capital Raising Traditional Capital Raising

Venture Capital - Worldwide

Worldwide

Total Capital Raised in the Worldwide Venture Capital market market is forecasted to reach €256.70bn in 2024.
Later Stage leads the market with a projected market volume of €141.50bn in 2024.
When compared globally, the United States will generate the most Capital Raised (€125,300.0m in 2024).
The United States remains the global leader in Venture Capital investment, attracting a significant portion of global capital in the Capital Raising market.

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

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Analyst Opinion

The Venture Capital market has been experiencing significant growth and development worldwide.

Customer preferences: Investors are increasingly drawn to the Venture Capital market due to the potential for high returns on investment. They are looking for innovative and disruptive startups that have the potential to scale rapidly and disrupt traditional industries. Startups in sectors such as technology, healthcare, and renewable energy are particularly attractive to investors. Additionally, investors are seeking opportunities in emerging markets, where there is a growing pool of talented entrepreneurs and untapped market potential.

Trends in the market: One of the key trends in the Venture Capital market is the rise of mega-deals. Investors are increasingly willing to invest large sums of money in high-potential startups, with the aim of maximizing their returns. This trend is driven by the increasing availability of capital and the desire to capture a larger share of the market. As a result, the average deal size in the Venture Capital market has been steadily increasing. Another trend in the market is the focus on sustainability and impact investing. Investors are increasingly looking for startups that not only have strong growth potential but also have a positive impact on society and the environment. This trend is driven by changing consumer preferences and increasing awareness of environmental and social issues. Startups that can demonstrate a commitment to sustainability and social responsibility are more likely to attract investment.

Local special circumstances: In the United States, the Venture Capital market is driven by the presence of major technology hubs such as Silicon Valley and New York City. These regions have a strong ecosystem of startups, venture capitalists, and support services, making them attractive destinations for investors. In addition, the US has a favorable regulatory environment and a culture that encourages entrepreneurship and innovation. In China, the Venture Capital market is fueled by a large and growing middle class, as well as government support for innovation and entrepreneurship. Chinese investors are increasingly looking for opportunities in sectors such as e-commerce, artificial intelligence, and fintech. The Chinese market also benefits from a large pool of talented entrepreneurs and a strong network of incubators and accelerators.

Underlying macroeconomic factors: The growth of the Venture Capital market is supported by several macroeconomic factors. Low interest rates and ample liquidity in the global financial system have made it easier for investors to access capital and invest in high-risk, high-reward ventures. In addition, technological advancements and the increasing availability of data have made it easier for investors to identify and evaluate investment opportunities. The Venture Capital market is also influenced by global economic trends. Economic growth and stability create a favorable environment for startups to thrive, attracting investment from venture capitalists. On the other hand, economic downturns can lead to a decrease in venture capital activity as investors become more risk-averse. In conclusion, the Venture Capital market is experiencing significant growth and development worldwide. Investors are increasingly drawn to the market due to the potential for high returns on investment. Mega-deals and impact investing are key trends in the market, driven by the availability of capital and changing consumer preferences. Local special circumstances, such as the presence of technology hubs and government support for innovation, also contribute to the growth of the market. Macro factors such as low interest rates and global economic trends play a significant role in shaping the Venture Capital market.

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.