Venture capital investment: Key market research findings
- Increasing investments in digital coin start-ups drives market growth
- The Americas dominate the market geographically
- Key vendors – Benchmark Capital, First Round Capital, Lowercase Capital, Sequoia Capital, and Union Square Ventures
Technavio’s market research analysts predict the global venture capital investment market to reach almost $560 billion by 2020. The market’s growth can be accredited to the huge capital investments in digital coin start-ups. Digital currency ensures faster transaction in the foreign exchange market. The conversion of the foreign exchange using digital currencies will also reduce the cost and settlement claims. As a result, several large and small corporations are formulating long-term strategies to make use of digital currencies. During 2015, the Americas dominated the market by accounting for around 58% of the overall market revenue. The rising number of financial technology start-ups, especially in the US, is expected to foster growth in the venture capital investment market in the Americas during the forecast period.
The new industry research report from Technavio discusses in detail the key drivers and trends responsible for the growth of this market and its sub-segments.
“The continuous rise in accelerators and incubators is an ongoing trend in the market. These programs help accelerate the development of entrepreneurial companies by providing technical and management guidance and addressing the multiple needs of enterprises. Incubators have led to the development of entrepreneurial learning, boosting new ventures. The early stage of development is attracting the interest of many investors and venture capital firms, helping fledging ventures,” says Amit Sharma, Lead Analyst, ICT, Technavio Research.
The growth of an Internet-based ecosystem spurs from the advances and innovations in technologies and different financial, technological platforms. Many top banks, card issuers, and app developers face heavy competition in the race to the leading position, augmenting the demand for venture capital funding. Furthermore, there is an ongoing large-scale expansion of application programming interfaces (APIs), clearer online information, and openness of financial standards (XBLR). This enables companies to develop solutions for a huge number of exclusive markets.
The key vendors in the market include Benchmark Capital, First Round Capital, Lowercase Capital, Sequoia Capital, and Union Square Ventures. Industry experts have started focusing on providing specialized services for various financial proposals, buyers and suppliers credits, project financing, external commercial borrowings, and formulating risk management strategies. The industry is also expected to witness venture capital companies in all geographies to concentrate and assist in the revival of sick micro enterprises industries in the coming years. The increase in demand for robotics in healthcare and defense sectors has induced venture capitalists to focus on investing in companies that manufacture robots for the healthcare industry and UAV or drones for the defense sector.
A more detailed analysis is available in the Technavio report, Global Venture Capital Investment Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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