Market Size of North America Venture Capital Industry
| Study Period | 2019 - 2028 |
| Base Year For Estimation | 2021 |
| Forecast Data Period | 2024 - 2028 |
| Historical Data Period | 2019 - 2020 |
| CAGR | > 6.00 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
North America Venture Capital Market Analysis
Although, the COVID-19 pandemic led to significant fluctuations in various industries, the North American venture capital deal values witnessed positive growth in 2020. The total deal value reached USD 182 billion by 2021’s end, up 29% from 2020, with an annual average growth rate of 14% since 2016. However, while total deal value increased compared with 2020, the number of transactions declined. About 6,564 venture capital deals were completed in North America during 2020, down 5% from 2019, and down further from 2014’s peak of nearly 9,000 deals.
The early part of the year played out as expected venture capitalists shied away from the riskier ends of the deal spectrum as the initial uncertainty of the COVID-19 pandemic took hold. There were fewer deals in the earlier seed and angel stages, with a shallower decline in later-stage capital injections.
As expected, COVID-19 did hit the VC investment landscape. Over the course of the past three months, only 541 VC deals were made in the seed to Series B stages, compared with 964 deals in the same period in 2019, 44 percent decrease in deals. The change varies across investment types, having the biggest impact on seed-stage deals, which dropped by 57 percent, down from 483 deals in 2019 within the three-month time period, to 209 deals in the March - June 2020 period.
North American venture funding went to the more ‘pandemic-friendly’ sectors. Biotechnology companies, for example, attracted USD 23 billion in funding last year, up 74%. Some of the more forward-looking industries also received significant shares of capital. As in the two years prior, software companies attracted the most venture capital last year, at USD 51 billion, primarily because of the sector’s diversified nature. Other large-ticket deals also related to self-driving cars, as well as secure payment processing and online gaming. On the surface, these deals may seem a response to the challenges that COVID-19 has created, but in reality they’re building on pre-pandemic trends, which will continue long after the virus is under control.
