In the wake of recessionary declines, the industry is expected to continue on a path to growth, but not without a few more ups and downs. This group of companies and individuals has benefited from rising security prices and increasing merger and acquisition activity over the five years to 2016. As a result, industry revenue is expected to grow over the five-year period at an annualized rate of 9.1% to $42.9 billion in 2016. Revenue growth was subdued in the early part of the period as the industry was reluctant to bounce back from the financial crisis and subsequent recession of the prior period that caused stock markets and business activity to dramatically contract. However, in recent years, industry traders have been able to realize higher revenue and profit from buying and selling securities. The S&P 500 index, a broad benchmark for financial market performance, has achieved record growth over the past five years. Moreover, a growing number of venture-backed IPOs and acquisitions have bolstered revenue from venture capital investments. Over the five years to 2021, industry revenue is projected to rise at an annualized rate of 3.2% to $50.2 billion.
The Venture Capital and Principal Trading industry comprises companies and individuals acting as principals in the buying or selling of financial contracts. Principals are investors who buy or sell for their own account, rather than on behalf of clients. This industry includes venture capital companies, investment clubs and viatical settlement companies. This industry excludes investment bankers, securities dealers and commodity contracts dealers trading as principals.
This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.