North America Venture Capital Investment Market

North America Venture Capital Market Analysis

The North America Venture Capital Market is expected to register a CAGR of greater than 6% during the forecast period.

COVID-19 hit the Venture Capital investment landscape in North America with about 6,564 venture capital deals completed in North America during the period, down 5% from the pre-pandemic level. The change varies across investment types, with the biggest impact on seed-stage deals. Biotechnology firms received the largest venture funding in the period, with software companies and online gaming start-ups existing next in line.

By stage most of the venture capital investment deals in the United States exist at the last stage, with the early stage, Angel/Speed, next in line. Venture capital investment in a later stage exists at a value of greater than USD 238 billion last year. With offices of leading investment banks of JP Morgan, Goldman Sachs, and BofA Securities headquartered in the United States, it makes it easier for North American growing businesses to get venture funding.

North America Venture Capital Market Trends

Canada Increasing Venture Capital Scenario is Fueling the Market

As per the Canadian Venture Capital and Private Equity Association, USD 4.9 billion was invested across 520 deals in Canada last year. Post-COVID-19 early-stage and growth-stage deal sizes observed a decline with an increase in average deal size for investments in pre-seed, seed, and later stages. Ontario, Cubic, British Colombia, and Alberta exist as the Canadian regions with the highest value of venture capital deals with a value of more than CAD 9,500 Million.

ICT exists among the Industries in Canada, with the largest number of venture capital deals existing at 381 deals last year; this is followed by deals in Life Science, Agribusiness, and cleantech and is expected to drive the North America Venture Capital Market Over the coming period.

Fintech Expansion In United States is Driving the Market

North America leads globally in terms of the number of fintech startups, with Europe and Asia-Pacific following next. Open Banking, Digital lending, Artificial Intelligence, Cybersecurity, and Blockchain are among the fintech investments driving the Venture Capital market in the United States. Recently, in the United States, Credit card FinTech company Petal closed a committed USD 200 million debt facility from Victory Park Capital (VPC), emerging as the largest Venture Capital funding in the region.

Stripe, Chime, Ripple, Plaid, and Brex had emerged as leading fintech unicorns in the United States with a combined market value of USD 125 Billion. This has led to more fintech startups coming over and raising demand for Venture capital investment.

North America Venture Capital Industry Overview

North America's venture capital market is highly competitive, with the presence of both international and domestic players. The market studied presents opportunities for growth during the period, which is expected to further drive the market competition. With multiple players holding significant shares, the market studied is competitive.

North America Venture Capital Market Leaders

North America Venture Capital Market News

• June 2022: Fund Corporation for the Overseas Development of Japan's ICT and Postal Services Inc. announced an investment in Sony Innovation Fund 3, which was a new investment fund targeting venture companies in industry sectors with high growth potential, including ICT services such as health tech and fintech, as a limited partner. This fund was expected to support business growth and Investment in Startups in the United States, Canada, and other countries.
• May 2023: AXA Venture Partners, a global venture capital firm specializing in high-growth, technology-enabled companies, announced the launch of a new strategy, targeting late-stage tech companies with a EUR 1.5 Billion fund with plans to bring new talents into its team in North America in order to efficiently execute its strategy.