United States Venture Capital Market Size (2024 - 2029)

The United States Venture Capital Market is anticipated to experience significant growth in its market size over the forecast period from 2024 to 2029. This expansion is driven by the increasing allocation of funds from affluent investors, investment banks, and financial institutions, which are often directed towards small companies with high growth potential. Despite a temporary decline in venture capital rounds due to the COVID-19 pandemic, the market has rebounded, reaching new heights in funding. Venture capital funds typically operate similarly to private equity funds, focusing on specific sectors and structured as partnerships between general and limited partners.

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Market Size of United States Venture Capital Industry

United States Venture Capital Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 1.30 Trillion
Market Size (2029) USD 1.94 Trillion
CAGR (2024 - 2029) 8.25 %
Market Concentration Medium

Major Players

United States Venture Capital Market Major Players

*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 1.30 trillion in 2024 to USD 1.94 trillion by 2029, at a CAGR of 8.25% during the forecast period (2024-2029).

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 Industry Segmentation

A Venture Capital firm is a group of investors who gain income from wealthy people who want to grow their wealth. They use this money to invest in more risky businesses than a traditional bank is willing to take on. Because the investments are risky, the venture capital firm typically charges a higher interest rate to the businesses it invests in than other lenders.

The United States Venture Capital Market is segmented by investments ( banking & financial services, healthcare, telecommunications, government agencies, and others), stage of investment (seed stage, startup stage, first stage, expansion stage, and bridge stage), and major states (California, New York, Massachusetts, Washington, and others). The report offers market size and forecasts for the United States Venture Capital Market in value (USD) for all the above segments.

By Industry Type
Banking & Financial Services
Healthcare
Telecommunications
Government Agencies
Other Industries
By Startup Stage
Seed Stage
Startup Stage
First Stage
Expansion Stage
Bridge Stage
By Major States
California
New York
Massachusettes
Washington
Others
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United States Venture Capital Market Size Summary

The United States Venture Capital market is poised for significant growth, driven by its dynamic nature and the increasing interest from both domestic and international investors. This market is characterized by investments in young, innovative companies with high growth potential, often in sectors like healthcare and technology. Venture capital funds operate similarly to private equity funds, focusing on specific sectors and typically structured as partnerships. The market has seen a transformation over the past two decades, with a notable increase in VC mega-deals, particularly involving unicorns, which are larger companies in later growth stages. Despite challenges posed by the COVID-19 pandemic, venture capital funding, especially for health tech innovators, has reached record levels, underscoring the sector's resilience and attractiveness.

The competitive landscape of the United States Venture Capital market is marked by the presence of major players such as Intel Capital, Tiger Global Management, Bessemer Venture, Kleiner Perkins, New Enterprise Associates, Accel Partners, Sequoia Capital, and Khosla Ventures. These firms are actively expanding their portfolios and adapting their investment strategies to capture emerging opportunities. For instance, New Enterprise Associates has recently closed significant funds dedicated to both early-stage and growth-stage investments, reflecting its strategic evolution. The market's growth trajectory is expected to continue, driven by the increasing number of players and the ongoing demand for innovative solutions across various industries.

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United States Venture Capital Market Size - Table of Contents

  1. 1. MARKET INSIGHTS AND DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

    3. 1.3 Market Restraints

    4. 1.4 Porter's Five Forces Analysis

      1. 1.4.1 Bargaining Power of Suppliers

      2. 1.4.2 Bargaining Power of Buyers

      3. 1.4.3 Threat of New Entrants

      4. 1.4.4 Threat of Substitutes

      5. 1.4.5 Intensity of Competitive Rivalry

    5. 1.5 Impact of COVID-19 on the Market

    6. 1.6 Insights on Latest Trends and Technological Innovations in the Industry

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Industry Type

      1. 2.1.1 Banking & Financial Services

      2. 2.1.2 Healthcare

      3. 2.1.3 Telecommunications

      4. 2.1.4 Government Agencies

      5. 2.1.5 Other Industries

    2. 2.2 By Startup Stage

      1. 2.2.1 Seed Stage

      2. 2.2.2 Startup Stage

      3. 2.2.3 First Stage

      4. 2.2.4 Expansion Stage

      5. 2.2.5 Bridge Stage

    3. 2.3 By Major States

      1. 2.3.1 California

      2. 2.3.2 New York

      3. 2.3.3 Massachusettes

      4. 2.3.4 Washington

      5. 2.3.5 Others

United States Venture Capital Market Size FAQs

The United States Venture Capital Market size is expected to reach USD 1.30 trillion in 2024 and grow at a CAGR of 8.25% to reach USD 1.94 trillion by 2029.

In 2024, the United States Venture Capital Market size is expected to reach USD 1.30 trillion.

United States Venture Capital Market Report Snapshots

United States Venture Capital Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)