The Venture Capital Industry Trends in The Us, Europe and Rest of the World

Venture capital can be defined as an invesment support to entrepreneurial capabilities and their desire to turn basic ideas into products and services which are anticipated to envy the world. Venture capital funds are able to build companies from the simplest form to mature organization. Once a company funded by venture capital matures and becomes successful, venture funds generally exit by taking it public through an initial public offering (IPO) or by selling it to big companies. This allows the venture funds to be free from the previous investment and invest in the next generation of companies. Despite the macroeconomic challenges in recent years, the global venture capital market performed better than ever which the total assets under management value reached a record of $ 852 billion in 2018 and the amount of institutional capital invested to the venture capital industry is increasing every year. Technology focused funds which includes artificial intelligence, autonomous driving, smart transport, biotech and blockchain, are the main driving force for that rise over the past 10 years. United States venture capital market, which is dominated by Silicon Valley, has the majority of the funds in the global venture capital market and it represents the most developed region for venture capital investment. Venture capital investors deployed nearly $131 billion in the US in 2018. China is the region that shows the highest rise of venture capital market. In 2018, the aggregate value of venture capital deals in Greater China ($107bn) surpassed US deals ($105bn). China, however, is not the only growth story in Asia. Southeast Asia has seen a boom in deals with annual aggregate deal value surpassing $10bn in 2018 for the first time. Outside of the US and Asia, deal activity in Europe has continued to increase despite political uncertainty in the region. Aggregate deal value in 2018 surpassed 8 $20bn for the first time, while activity in the first half of 2019 puts us on course for another record year. These are some of the key trends that are observed in the venture capital industry in recent years. This paper examined the venture capital market trends and the expected future trends with the related regional ecosystems around the globe.