The global demand for venture capital funding is witnessing enormous growth, and is projected to increase in the future, owing to rise in investments in new technologies and growth in startups in emerging countries of Asia-Pacific. Venture capital funds are investments done by investors to purchase private equity of small and medium size firms, which boost the market growth. It is always risky for investors to contribute funds for development of start-ups as they are at high risk of suffering loss. In addition, venture capital funds are run by a network of skilled experts who support start-ups to build a business strategy and help them to adopt advance technologies to improve their growth potentials.
COVID-19 scenario analysis:
- Impact of COVID-19 on start-ups is extreme, owing to shrinking economy, contraction of market, and increase in unemployment.
- In Europe and Asia, funding for new projects has declined relative to usual rates. Many investors are seeking to invest in digital startups than conventional businesses.
- Fund managers seek to prolong life-cycle of existing funds, owing to a major financial meltdown, so new deals are delayed and halted.
- The outbreak has resulted in companies moving from seeking new revenue opportunity to seek new path for surviving in the market. Many start-ups have faced huge losses and have shut down their operations, owing to the pandemic situation. This has negatively impacted the venture capital funds market.
Top impacting factors: Market Scenario Analysis, Trends, Drivers, and Impact Analysis:
Growth in start-ups in Asian countries and rise in number of investors in emerging countries drive growth of the market. In addition, rise in demand for venture capital funds by various SMEs to boost up their market share fuels growth of the venture capital funds market. However, budget constraints and higher risks associated with lower exit barriers hamper growth of the market. Furthermore, growth in adoption of advance technologies such as artificial intelligence and increase in investment opportunities in the U.S. and Canada is anticipated to provide lucrative opportunities for the market.
The global venture capital funds market trends are as follows:
Leveraging Artificial Intelligence (AI):
Venture capital companies are embracing AI to eliminate inefficiencies in activities to improve technical ability to disburse their capital in most efficient manner. AI in venture capital investments is utilized to detect and recognize trends through big data and source transactions to meet targets to easily monitor extensive research cycle. Venture capital investors have been able to assess risk through AI, which is used to monitor economic activities in the market, plan investment patterns in the scenario of a given opportunity and a risk-return model.
Rise in fund sizes in venture capital industry:
Growth in need to increase their initial funding among entrepreneurs drives the growth of the venture capital funds industry. In Europe and the U.S., funding has seen considerable growth due to increase investor across the region. From 2016 to 2018, rise in venture capital funds has increased in Europe, although several start-ups have continued to struggle, rise in funds is noticeably seeing significant progress. In India, venture capital funds are also growing, with more ventures focusing on consumer technology, software / SaaS, fintech, and business-to - business trade and technology.
Key benefits of the report:
- This study presents analytical depiction of the global venture capital funds market along with the current trends and future estimations to determine the imminent investment pockets.
- The report presents information related to key drivers, restraints, and opportunities along with detailed analysis of the global venture capital funds market share.
- The current market is quantitatively analyzed to highlight the market growth scenario.
- Porter’s five forces analysis illustrates the potency of buyers & suppliers in the market.
- The report provides a detailed market analysis based on the present and future competitive intensity of the market.
Questions answered in the venture capital funds market research report:
- Who are the leading market players active in the venture capital funds market?
- What would be the detailed impact of COVID-19 on the global venture capital funds market?
- What current trends would influence the market in the next few years?
- What are the driving factors, restraints, and opportunities in the global venture capital funds market?
- What are the projections for the future that would help in taking further strategic steps?
Venture Capital Funds Market Report Highlights
Aspects | Details |
By Fund Size |
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By Funding Type |
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By Industry Verical |
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By Region |
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Key Market Players | SoftBank Capital, Sequoia Capital, New Enterprise Associates, Union Square Ventures, Kleiner Perkins Caufield & Byers, DAG Ventures, Andreessen Horowitz, Benchmark, Index Ventures, Accel |
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