41 attention-grabbing statistics about venture capital investments

Share on facebook
Share on twitter
Share on linkedin

Venture Capital firms have become more ubiquitous the past few years in financial circles. Particularly from the fintech industry, whereby challenger startup companies make the news through their seed funding round figures, backed by some of the world’s largest VC companies.
The past ten years since the financial crisis has seen a fairly large boom in the VC market. Much of the attention can be seen coming from the United States, which dominates globally in terms of investment deals, with finances being shared amongst upcoming businesses of all kinds. In the Bay Area where some of the world’s most well-known tech companies are founded, venture capital funding is rife, and software has become the most sought-after area for investment. That’s not to say that Europe, APAC and Africa aren’t building out their own VC ecosystems however, with record numbers of investments being made around the globe.
To get a more holistic understanding of the venture capital world, here are some of the most pertinent facts and figures touching upon the main talking points of the past few years to present.

Basic facts

1. [bctt tweet=”Ten years ago, deals ranged between $10 million and $25 million in the US; now there is a trend of $50 million plus deals getting a greater share of total investment. – Pitchbook” username=”kurtosys”]
2. [bctt tweet=”2008 saw global annual VC investment of $53 billion. There has been a Compound Annual Growth Rate (CAGR) of 17% in the past decade. – Toptal” username=”kurtosys”]
3. [bctt tweet=”In 2018, seed activity from all deals sank to a record low of 25%. Late stage deals swelled to record highs and total annual VC funding globally rose to $207 billion. – TechCrunch” username=”kurtosys”]
4. [bctt tweet=”The sector has grown by 12.1% annually since the financial crisis, and the amount of capital raised per year has grown by 100% over the decade. – Toptal” username=”kurtosys”]
5. [bctt tweet=”Corporate Venture Capitals were involved in over 20% of all venture capital deals in 2018. – Toptal” username=”kurtosys”]
6. [bctt tweet=”72% of sovereign wealth funds invest directly in VC deals, with commitments doubling each year. – Toptal” username=”kurtosys”]

Regional statistics

7. [bctt tweet=”Companies in the Americas dominate globally in terms of VC deals; investments received totalled $136 billion in 2018. – Nexitventures” username=”kurtosys”]
8. [bctt tweet=”Companies in the APAC region raised funding actively and grew to over $90 billion last year. – Nexitventures” username=”kurtosys”]
9. [bctt tweet=”In Q1 of 2018, the Bay Area, Boston and New York accounted for over 70% of total capital invested in the US. – Pitchbook” username=”kurtosys”]
10. [bctt tweet=”VCs tend to invest in their home market, and 50% of deals in the US are made in the investors’ home state. – Toptal” username=”kurtosys”]
11. [bctt tweet=”VC funding for blockchain companies in North America totals around $447 million – Statista” username=”kurtosys”]
12. [bctt tweet=”The West Coast of the US saw less than 40% of the total deal count, and New England, the Mid-Atlantic and Great Lakes region totalled 38.6% together. – Pitchbook” username=”kurtosys”]
13. [bctt tweet=”Companies in Europe received just over $24 billion in funding, the global share of European VC sunk to under 10% of global investment. – Nexitventures” username=”kurtosys”]
14. [bctt tweet=”VC investment in Europe totalled $24 billion in 2018; in Q4 the largest deals were spread across the UK, Germany, France, Ireland, Denmark and Israel. – Crunchbase” username=”kurtosys”]
15. [bctt tweet=”The CEO of Softbank in Japan, Masayoshi Son, meets personally with the founder of every team he invests in, dealing with around 44 deals a year.  – Toptal” username=”kurtosys”]
16. [bctt tweet=”In 2018, the number of VC deals in Africa doubled to 457, totalling $725.6 million invested across the continent. The top ten deals accounted for 61% of the total raised. – Toptal” username=”kurtosys”]
17. [bctt tweet=”25 African based VC funds launched last year, doubling the investor base in one year. Kenya, South Africa and Nigeria are the biggest markets for VC opportunities. – Toptal” username=”kurtosys”]

Diversity

18. [bctt tweet=”Following two demographic studies of founders in startups, businesses with women of colour CEOs receive less than 1% of all VC funding each year. – DigitalUndivided/ProjectDiane:Latinx studies” username=”kurtosys”]
19. [bctt tweet=”Over the past decade, Latinx women-led startips raised only 0.32% of VC fundings and black women only raised 0.0006% – Girlboss” username=”kurtosys”]
20. [bctt tweet=”Nearly 60% of VCs believe women and minority-owned businesses get “about the right amount of capital”, 20% believe they get “more capital than they deserve” – Morgan Stanley Survey” username=”kurtosys”]
21. [bctt tweet=”Black women account for 1% and Asian women make up 6% of the VC industry, Latinx represent 0%, whilst 58% of VCs are white men. – Girlboss” username=”kurtosys”]
22. [bctt tweet=”A survey of 223 VCs in the UK suggests 24% of the workforce is non-white. – Diversity VC” username=”kurtosys”]
23. [bctt tweet=”In 2019, women now make up 30% of VC personnel, up from 27% in 2017. – Diversity VC” username=”kurtosys”]
24. [bctt tweet=”Women comprise 20% of investment roles, a 2% improvement from 2017. – Diversity VC” username=”kurtosys”]
25. [bctt tweet=”Only 13% of VC firms’ investment committee members are female, based on a survey of 146 members from 58 firms. – Diversity VC” username=”kurtosys”]
26. [bctt tweet=”In 2017, 26% of junior investment professionals are women. That figure now stands at 37%. – Diversity VC” username=”kurtosys”]
27. [bctt tweet=”63% of all firms have no senior women in investment teams. All male investment teams has fallen from 48% to 37% in two years. – Diversity VC” username=”kurtosys”]
28. [bctt tweet=”96% of VC professionals have a university education, and 28% went to a Russell Group university in the UK. – Diversity VC” username=”kurtosys”]
29. [bctt tweet=”33% of personnel in the VC industry graduated from Oxford, Cambridge, Harvard, Stanford or a business school. – Diversity VC” username=”kurtosys”]
30. [bctt tweet=”Most VCs have experience in consulting (20%), general finance (18%) or investment banking (12%). – Diversity VC” username=”kurtosys”]
31. [bctt tweet=”Only around 4% have experience in technology companies such as Apple or Google. – Diversity VC” username=”kurtosys”]

Companies and industries

32. [bctt tweet=”Tiger Global Management was the most frequent lead investor in 2019’s Q2 early and late stage deals. – Crunchbase” username=”kurtosys”]
33. [bctt tweet=”Ant Financial, based in Hangzhou, China, recorded a record $14 billion raise in Q2 2018. – KPMG” username=”kurtosys”]
34. [bctt tweet=”Ant Financial, based in Hangzhou, China, recorded a record $14 billion raise in Q2 2018. – KPMG” username=”kurtosys”]
35. [bctt tweet=”The lowest startup failure rate of surveyed industries were the finance, insurance and real estate sectors with 42%. Which is nearly one every two startups. – Failory” username=”kurtosys”]
36. [bctt tweet=”216 gaming companies have received venture capital investment worldwide to date. – Statista” username=”kurtosys”]
37. [bctt tweet=”33.7% ($3 billion) of capital invested in early-stage companies in Q2 were healthcare startups. – NVCA” username=”kurtosys”]
38. [bctt tweet=”There were almost 150 funding rounds with a valuation of $1 billion or more with Ant Financial and Juul as the leaders, the latter valued at $12.8 billion. – Nexitventures” username=”kurtosys”]
39. [bctt tweet=”The software sector led the way in deals, with over 3,700 in 2018, and pharma and biotech was second with 720. The software sector saw a record level of capital in 2018 at $46.8 billion. – Nexitventures” username=”kurtosys”]
40. [bctt tweet=”This trend has decelerated slightly in 2019, with around 30% of total US VC deals going to software companies. I claimed more than a third of total value the year prior. – Nexitventures” username=”kurtosys”]
41. [bctt tweet=”In 2018, over $23 billion was invested across 1,308 deal in life science startups – a record number. – Nexitventures” username=”kurtosys”]
Have you found out any more exciting facts about venture capital? Let us know!

ray aso

ray aso