What is venture capital?
Venture capital is a way for small businesses and startups to raise funds. During the early stages of business, capital access is difficult. Venture capital investors and firms are willing to take risks on unknown or undeveloped businesses in exchange for equity. This backing is more common in some industries, particularly in the technology sector.
Size of the industry
There are thousands of venture capital deals each year in the United States, and the value of venture capital investment is in the tens of billions of dollars annually. The size of these deals depends on a variety of factors. Seed companies, or companies in their infancy, receive the smallest deals. The median deal size increases as the companies are more established.