Market Insights Financial Capital Raising Traditional Capital Raising

Venture Capital

North America

The total capital raised in the Venture Capital market market in North America is forecasted to reach US$274.0bn in 2024.
The Later Stage market is expected to dominate the market with a projected market volume of US$198.4bn in 2024.
When compared globally, the United States is set to generate the most capital raised, amounting to US$264,500.0m in 2024.
In North America, the Venture Capital market is experiencing a surge in tech startups seeking funding for innovative solutions.

Key regions: China, Australia, India, Europe, Israel

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Currency

Analyst Opinion

The Venture Capital market in North America has been experiencing significant growth and development in recent years.

Customer preferences: Investors in North America are increasingly attracted to the Venture Capital market due to the potential for high returns on investment. Startups and early-stage companies offer the opportunity for substantial growth and profitability, which appeals to both individual and institutional investors. Additionally, the innovative and dynamic nature of the Venture Capital market allows investors to be actively involved in shaping the future of various industries.

Trends in the market: One prominent trend in the North American Venture Capital market is the increasing focus on technology and innovation. Startups in sectors such as artificial intelligence, blockchain, and biotechnology have been receiving significant investment, as they have the potential to disrupt traditional industries and create new market opportunities. The rapid advancements in technology and the increasing demand for digital solutions have further fueled this trend. Another trend in the market is the rise of impact investing. Investors in North America are increasingly seeking opportunities to make a positive social and environmental impact through their investments. This has led to a growing interest in startups and companies that are focused on sustainability, renewable energy, and social innovation. Impact investing not only provides financial returns but also aligns with the values and beliefs of many investors.

Local special circumstances: The North American Venture Capital market benefits from a robust ecosystem that supports entrepreneurial activity. The region is home to some of the world's leading technology hubs, such as Silicon Valley in California and the tech corridor in the Boston area. These hubs attract top talent, foster innovation, and provide access to a network of experienced mentors and investors. The presence of prestigious universities and research institutions also contributes to the vibrant startup ecosystem in North America.

Underlying macroeconomic factors: The strong economic growth in North America has created a favorable environment for Venture Capital investment. The region has a stable and well-developed financial system, which provides access to capital for startups and early-stage companies. Additionally, low interest rates and ample liquidity have made it easier for investors to deploy capital into the Venture Capital market. Furthermore, government policies and initiatives have played a crucial role in supporting the growth of the Venture Capital market in North America. Incentives such as tax breaks and grants have encouraged investment in startups and incentivized entrepreneurship. The regulatory environment is also relatively favorable, allowing for flexible investment structures and ease of doing business. In conclusion, the Venture Capital market in North America is thriving due to customer preferences for high returns and involvement in innovative industries. The focus on technology and impact investing reflects the changing dynamics of the market. The presence of strong entrepreneurial ecosystems and supportive macroeconomic factors further contribute to the growth and development of the Venture Capital market in North America.

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.