Global Venture Capital Investment Market 2018-2022
About Venture Capital Investment
Fintech solutions provide alternative finance firms with a platform for investors to directly come across companies and individuals looking for equity financing and debt. The technology has enabled new players to take faster decisions, engage with customers more precisely, and run operations at low cost-to-income ratios compared with traditional banks. The low-interest rates offered in the alternative finance sector have lowered the defaults rate and led investors to seek high-yielding assets. The main areas of focus for investors are lending, money transfers, blockchain, payment processing, and wealth management among others. Several VC firms are investing in fintech startups, wherein the firms are exploring software to develop financial planning and other portfolio management tasks. These startups aim to disrupt traditionally modeled corporations. Of late, many banks are coming forward and partnering with alternative lenders, a trend that has taken over the banking and fintech sector. For banks, these collaborations are expected to increase the customer base and improve their footprint, while for alternative lenders, it will bring in more customers and capital.
Technavio’s analysts forecast the global venture capital investment market to grow at a CAGR of 27.48% during the period 2018-2022.
Covered in this report
The report covers the present scenario and the growth prospects of the global venture capital investment market for 2018-2022. To calculate the market size, the report considers the revenue generated from the venture capital investment.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global Venture Capital Investment Market 2018-2022
Technavio recognizes the following companies as the key players in the global venture capital investment market: Accel, Benchmark Capital, First Round Capital, Lowercase Capital, Sequoia Capital, and UNION SQUARE VENTURES.
Other Prominent Vendors in the market are: Andreessen Horowitz, Bessemer Venture Partners, Greylock Partners, and Kleiner Perkins Caufield & Byers.
Commenting on the report, an analyst from Technavio’s team said: “The latest trend gaining momentum in the market is IPO market gains momentum. In 2017, a lot of major startups with IPOs such as Cloudera, China Rapid Finance, and QM came up. Mg, Biologics, a Hong Kong-based drug R&D company, raised $511 million through IPO. Most companies issuing IPOs were technology-focused, and were software and cloud service providers. Investors showed great interest and trust in companies that have high revenue growth with good management, innovative product line, and quality management. In November 2016, Snap, filed documents for IPO and on March 2017, the company raised almost $30 billion. The on-demand ride-hailing service provider, Uber also plans to come up with an IPO in 2019.”
According to the report, one of the major drivers for this market is strong pace of technological innovations in Iot and digital economy. Over the last few years, sectors including loT, blockchain, big data, and Al have experienced strong growth in technological innovations. However, most of these innovations are related to loT. Although, loT is still in its early stages of development, it is shortly expected to become mainstream since it is attracting players from various industries. This, is turn, has created a competitive landscape that witnesses heavy investments from consumer electronics firms, telecom companies, media companies, and Internet players. Intel Capital tops the list as the most active investor in loT startups, followed by Qualcomm Ventures. Since these startups are involved in designing ever-smaller chips to power mobile devices, this area offers them strategic value for product launches.
Accel, Benchmark Capital, First Round Capital, Lowercase Capital, Sequoia Capital, UNION SQUARE VENTURES, Andreessen Horowitz, Bessemer Venture Partners, Greylock Partners, and Kleiner Perkins Caufield & Byers.