Interested in the American venture capital market? Maybe these basics and statistics are what you are looking for. Here is what is meant to be a quick informative and helpful guide about a range of pertinent venture capital market information. Including, but not limited to (I love that phrase that all attorneys put into documents) how many venture capital firms there actually are, how much money these firms invested in 2011 and 2012 (across a range of industries) and just how big the venture capital market in the U.S. really is.
So, let’s take a look at the hard facts. After discovering this vital data, you’ll be one step closer to becoming a bona fide American venture capital market specialist… (okay not really but here are some good nuggets)
How Many Venture Capital Firms are There?
Based on 2010 figures, there were 462 active venture capital companies operating in the United States. In 2011, overall investment income from venture capital firms totaled $29.1 billion dollars.
By 2012, the total investments of all active firms totaled $32.6 billion dollars. These investments happened in many different industries, including biotech and software.
The 2008 Global Economic Crisis Impacted Venture Capital Firms
Because of the global economic crisis (which happened in 2008), the total amount of firms has dropped by a significant amount since that year, as did total investment income from these companies. However, as time has passed, this segment of the marketplace has regained some traction. Investments (and the number of venture capital firms which are active) are increasing, which is obviously a very positive sign.
How Big is the U.S. Venture Capital Market?
With overall investments of $32.6 billion in 2012, the American venture capital market is important, but not a big as it was before the global economic crisis. However, it still remains a powerful catalyst for domestic and international economic development. While less capital is now available for American and multinational deals (particularly for some volatile fields of industry, such as life sciences), opportunities do abound.
However, it is safe to say that American venture capital firms or individual capitalists are more selective then ever when it comes to deciding which venture capital opportunities to invest in. These days, they are more likely to hand over cash for investments that feature innovative technology, or those which promise rapid growth potential or a fully-developed business model.
In addition, venture capital firms may look at the management teams of the companies that are considering investing in, to see if team members have the right blend of experience, education and vision. Did I say may? Okay I should of said “they will“.
Now that you know more about the venture capital market, you’ll have additional insight into this important area of the economy. Because venture capitalists help to oil the motor of business, across a dizzying array of industries, they are vital components in America’s success and prosperity.
While the challenges which were encountered in 2008 continue to have an impact, the most fearless and forward-thinking venture capital firms are rising to the challenge and finding attractive investment opportunities which, when successful in terms of profits, definitely help to keep America strong.