Venture Capital Market Report 2026

The venture capital market size has grown rapidly in recent years. It will grow from $412.58 billion in 2025 to $455.8 billion in 2026 at a compound annual growth rate (CAGR) of 10.5%. The growth in the historic period can be attributed to expansion of startup ecosystems, growth in entrepreneurial activity, availability of high-net-worth investors, development of innovation hubs, increasing acceptance of equity-based funding.

The venture capital market size is expected to see rapid growth in the next few years. It will grow to $671.05 billion in 2030 at a compound annual growth rate (CAGR) of 10.2%. The growth in the forecast period can be attributed to increasing investments in ai and deep-tech ventures, rising focus on sustainable and impact investing, expansion of global venture capital funds, growing participation of institutional investors, increasing adoption of data-driven investment strategies. Major trends in the forecast period include rising focus on technology-driven startups, increasing cross-border investment activity, growing emphasis on sector-specific funds, expansion of late-stage venture funding, enhanced use of data analytics in deal screening.

The increasing number of startups is expected to propel the growth of the venture capital market going forward. Startups are newly established companies that aim to develop unique products or services, often marked by innovation and high growth potential. The rise in startups is driven by lower entry barriers, the availability of funding, a growing entrepreneurial culture, and supportive ecosystems. Venture capital provides essential funding and guidance for these startups, enabling them to scale quickly, innovate, and bring their offerings to market. For instance, in February 2024, The Greater Birmingham Chambers of Commerce, a UK-based business support organization, reported a significant increase in new company registrations, reaching 900,006 in 2023, up from 805,141 in 2022 - an 11.8% growth. This surge brought the total number of registered companies in the UK to a record 5,476,772. Therefore, the increasing number of startups is driving the growth of the venture capital market.

Venture capital firms are increasingly adopting strategic partnerships to enhance investment opportunities, leverage complementary expertise, and accelerate the growth of their portfolio companies. Strategic partnerships involve collaborative relationships between organizations that combine resources, expertise, and efforts to achieve shared objectives. For instance, in December 2023, Nokia Corporation, a Finland-based telecommunications and technology company, partnered with America’s Frontier Fund (AFF), Roadrunner Venture Studios (RVS), and Celesta Capital to accelerate the commercialization of Nokia Bell Labs’ advanced technologies. This collaboration focuses on innovations in 5G/6G, semiconductor design, AI, sensors, and quantum computing, with AFF and RVS driving venture development and investment, while Celesta Capital scales and accelerates Nokia-backed ventures. Nokia Bell Labs, known for pioneering technologies like the transistor and solar cell, spearheads this initiative.

In June 2024, General Catalyst, a US-based venture capital firm specializing in early-stage and transformative investments, acquired Venture Highway for an undisclosed amount. This acquisition strengthens General Catalyst's strategic position in the Indian market and enhances its ability to identify and support high-potential technology ventures, expanding its global footprint and driving innovation across diverse sectors. Venture Highway is an India-based venture capital firm that invests in early-stage startups, focusing on innovative technology and scalable business models across industries.

Major companies operating in the venture capital market are Sequoia Capital Operations LLC, Insight Partners LLC, Tiger Global Management LLC, New Enterprise Associates Inc., Accel Partners LLC, IDG Capital Partners, General Catalyst Group LLC, Benchmark Capital Partners L.P., Seedcamp LLP, Index Ventures LLP, Kleiner Perkins Caufield & Byers LLC, GGV Capital LLC, Greylock Partners LLC, Redpoint Ventures LLC, HV Holtzbrinck Ventures Adviser GmbH, AAC Capital Partners Limited, Balderton Capital LLP, Nexus Venture Partners LLC, DST Global Ltd., 360 Capital Partners S.A., LocalGlobe LLP, Point Nine Management GmbH, Atlantic Labs GmbH, Union Square Ventures LLC.

North America was the largest region in the venture capital market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the venture capital market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the venture capital market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The venture capital market includes revenues earned by entities through management services, advisory services, and consulting services. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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