United States Venture Capital Market Size
|Study Period||2019 - 2028|
|Base Year For Estimation||2022|
|Market Size (2023)||USD 1.20 Trillion|
|Market Size (2028)||USD 1.79 Trillion|
|CAGR (2023 - 2028)||8.25 %|
*Disclaimer: Major Players sorted in no particular order
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United States Venture Capital Market Analysis
The United States Venture Capital Market size in terms of assets under management value is expected to grow from USD 1.20 trillion in 2023 to USD 1.79 trillion by 2028, at a CAGR of 8.25% during the forecast period (2023-2028).
Venture capital generally comes from well-off investors, investment banks, and other financial institutions. However, it does not always take a monetary form and also be provided in the technical or managerial expertise form. Venture capital is typically allocated to small companies with exceptional growth potential or that grow quickly and appear poised to continue expanding. COVID-19 slashed the number of VC rounds in the US by 44%. VC funding to US-based companies thrived, hitting new highs in 2020 and then again in 2021 YTD.
Venture capital funds are run similarly to private equity funds, where the portfolio of companies invests in a specific sector specialization. For instance, a venture capital fund specializing in healthcare may invest in a portfolio of ten companies focused on disruptive healthcare technologies and equipment. A venture capital fund is usually structured as a partnership, where the venture capital firm serves as the general partners and the investors as the limited partners.
United States Venture Capital Market Trends
Healthtech trends toward record-breaking year
At the intersection of health care and technology, health tech innovators include a unique place in the Future of Health. Investors, especially CVCs, can support innovators and the industry in general. Innovators could bring transformative business models and a consumer-centric approach. It is imperative for investors, including industry incumbents, to coach innovators and support them with industry and regulatory expertise and capital to accelerate toward the future of health together.
Growth in venture capital funding for health tech innovators, at record levels in Covid year, continued unabated in 2021. The previous year, venture funding for health tech innovators crossed a record-breaking revenue. Even as the economy and industries, including the healthcare industry, reel under the impact of the COVID-19 pandemic, venture funding for these innovators nearly doubled in previous years.
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Increasing Number of Venture Capital Investment Deals all time high in 2021
Venture capital is a temporary equity investment in young, innovative, non-listed companies that stand out. Although the companies lack the current earning power, they include above-average growth potential, which makes them an attractive investment opportunity. Investment stages shifted recently. In many cases, seed, early, and late-stage investing are now distinct subindustries within VC. A successful VC ecosystem requires healthy activity at each investment stage since each plays an integral role in a company's growth. The VC investment landscape transformed over the past 20 years.VC mega-deals more than doubled in 2021 compared to 2020. Many of these mega deals are for unicorns since these companies tend to skew larger and are often later in their growth cycle.
United States Venture Capital Industry Overview
The United States Venture Capital market is highly competitive, with the presence of both international and domestic players. The market studied presents opportunities for growth during the forecast period, which is expected to drive the market competition further. With multiple players holding significant shares, the market studied is competitive. The major market players include Intel Capital, Tiger Global Management, Bessemer Venture, Kleiner Perkins, New Enterprise Associates (NEA), Accel Partners, Sequoia Capital, and Khosla Ventures.
United States Venture Capital Market Leaders
Tiger Global Management
New Enterprise Associates (NEA)
*Disclaimer: Major Players sorted in no particular order
United States Venture Capital Market News
- January 2023: NEA (New Enterprise Associates) announced it closed on approximately USD 6.2 billion across two funds, bringing the firm's assets under management to over USD 25 billion as of December 31, 2022. The new pair of funds marks a first for NEA, with one dedicated to early-stage investing and the other to venture growth-stage opportunities. It reflects the 45-year-old firm's continuous evolution of its model over decades.
- March 2022: Intel Corporation announced an agreement to acquire Granulate Cloud Solutions Ltd, an Israel-based developer of real-time continuous optimization software. The Granulate acquisition will help cloud and data center customers maximize compute workload performance and reduce infrastructure and cloud costs.
US Venture Capital Market Report - Table of Contents
1.1 Study Assumptions and Market Defination
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS AND DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Buyers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitutes
4.4.5 Intensity of Competitive Rivalry
4.5 Impact of COVID-19 on the Market
4.6 Insights on Latest Trends and Technological Innovations in the Industry
5. MARKET SEGMENTATION
5.1 By Industry Type
5.1.1 Banking & Financial Services
5.1.4 Government Agencies
5.1.5 Other Industries
5.2 By Startup Stage
5.2.1 Seed Stage
5.2.2 Startup Stage
5.2.3 First Stage
5.2.4 Expansion Stage
5.2.5 Bridge Stage
5.3 By Major States
5.3.2 New York
6. COMPETITIVE LANDSCAPE
6.1 Market Concentration Overview
6.2 Company Profiles
6.2.1 Intel Capital
6.2.2 Tiger Global Management
6.2.3 Bessemer Venture
6.2.4 Kleiner Perkins
6.2.5 New Enterprise Associates (NEA)
6.2.6 Accel Partners
6.2.7 Sequoia Capital
6.2.8 Khosla Ventures*
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. DISCLAIMER AND ABOUT US
US Venture Capital Market Research FAQs
How big is the United States Venture Capital Market?
The United States Venture Capital Market size is expected to reach USD 1.20 trillion in 2023 and grow at a CAGR of 8.25% to reach USD 1.79 trillion by 2028.
What is the current United States Venture Capital Market size?
In 2023, the United States Venture Capital Market size is expected to reach USD 1.20 trillion.
Who are the key players in United States Venture Capital Market?
Intel Capital, Tiger Global Management, Bessemer Venture, Kleiner Perkins and New Enterprise Associates (NEA) are the major companies operating in the United States Venture Capital Market.
United States Venture Capital Industry Report
Statistics for the 2023 United States Venture Capital market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. United States Venture Capital analysis includes a market forecast outlook to for 2023 to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.