The three emerging market trends driving the global venture capital investment market according to Technavio research analysts are:
- IPO market gains momentum
- Growing portion of new investments in China and India
- Increased participation from mutual funds, hedge funds, and banks in the VC market
- IPO market gains momentum
In 2017, a lot of major startups such as Cloudera, China Rapid Finance, and Okta came up with IPOs. Most of the companies issuing IPOs were technology-focused and were software and cloud service providers.
According to a senior analyst at Technavio, “Investors showed great confidence in companies that exhibited high revenue growth, innovative product line, and quality management. For instance, WuXi Biologics, a Hong Kong-based company raised USD 511 million through an IPO.”
During the forecast period, the Americas was the leading venture capital investment market with a market share of more than 56%, with the US being the leading country in the region. This can be attributed to the fact that the US is a major hub for startups and most venture capital firms are headquartered in the country.
Global venture capital investment market segmentation
This market research report segments the global venture capital investment market by sectors (software, pharmaceuticals and biotechnology, media and entertainment, medical devices and equipment, IT hardware, and others) and by geography (the Americas, APAC, and EMEA).
The software segment held the largest market share in 2017. The pharmaceuticals and biotechnology had the second largest share of over 10%. The other sectors include network and equipment, energy, telecommunication, consumer products and services, healthcare, agribusiness, and supply chain and logistics.
The Americas was the leading region for the global venture capital investment market in 2017, followed by APAC and EMEA. The three regions are expected to maintain their market share over the forecast period with marginal changes of less than 0.5%.
