Slow and steady: The industry has benefited from rising security prices and increasing merger and acquisition activity

Revenue grew steadily during the early part of the period due largely in part to financial bull markets as well as increased mergers and acquisition activity. However, revenue slowed in 2016 as venture capitalists were wary of financing new projects due to geopolitical and interest rate risks. industry revenue is expected to grow over the five years to 2018 at an annualized rate of 4.9% to $30.0 billion. Over the five years to 2023, industry revenue is projected to rise at an annualized rate of 2.5% to $34.0 billion. Financial markets will continue trending upward, which will boost trading and business activity. Venture capital will grow as investors can more easily exit investments through IPOs or acquisitions...purchase to read more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Industry traders have realized higher revenue and profit from buying and selling securities
  • Revenue growth has been underpinned by generally rising security prices and widening spreads
  • Strong financial market performance will lead to more IPOs and acquisitions
  • Industry Report - Industry SWOT Analysis Chapter

    The Venture Capital and Principal Trading industry is growing at a similar rate to the overall economy. Industry value added (IVA), a measure of the industry's contribution to the overall economy, is forecast to increase at an annualized rate of 4.1% over the ten years to 2023. Comparatively, US GDP is forecast to grow an annualized 2.2% during the same period. While IVA growth has outpaced that of GDP over the ten years to 2023, the gradual increase in the number of industry operators during the period is emblematic of a mature industry.As securities prices rise and business activity increases, venture capital will benefit from a better investing environment. How...purchase to read more.

    Additional Insights for the Venture Capital & Principal Trading Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Venture Capital & Principal Trading Industry are

  • Ability to effectively manage risk
  • Having an effective performance monitoring system
  • Management of a high quality assets portfolio
  • IBISWorld analysts also discuss how external factors such as S&P 500 and Investor uncertainty in the Venture Capital & Principal Trading industry impact industry performance..

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    What's in this report

    What is the Venture Capital & Principal Trading Industry?

    The Venture Capital and Principal Trading industry comprises companies and individuals acting as principals in the buying or selling of financial contracts. Principals are investors who buy or sell for their own account, rather than on behalf of clients. This industry includes venture capital companies, investment clubs and viatical settlement companies. This industry excludes investment bankers, securities dealers and commodity contracts dealers trading as principals.

    Industry Products
  • Venture capitalists
  • Traders in financial products
  • Other investors
  • Industry Activities
  • Investing in financial contracts on own account
  • Participating in investment clubs (group of people who pool their money to make investments)
  • Mineral royalties or leases dealing (as principal in dealing to investors)
  • Oil royalty dealing (as principal in dealing to investors)
  • Viatical settlement (purchasing life insurance policy at a discount to later collect the death benefit)
  • Venture capital (investing in startups and small businesses with long-term growth potential)
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • S&P 500
  • Investor uncertainty
  • Initial public offerings
  • Yield on 10-year Treasury note
  • Regulation for the Investment Management industries

  • Current Performance
  • Industry landscape
  • Opportunities and challenges
  • Chart: Revenue Growth

  • Industry Outlook
  • Financial markets underpin growth
  • Higher returns, higher taxes
  • Table: Venture Capital & Principal Trading Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Venture Capital & Principal Trading Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Wind Turbine Manufacturing
  • Solar Panel Manufacturing
  • Medical Device Manufacturing
  • Software Publishing
  • Biotechnology

  • Key Selling Industries
  • Commodity Dealing and Brokerage
  • Financial Planning & Advice
  • Investment Banking & Securities Dealing
  • Securities Brokering
  • Stock & Commodity Exchanges

  • Products & Services
  • Venture capitalists
  • Traders in financial products
  • Other investors
  • Chart: Venture Capital & Principal Trading Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Software
  • Other
  • Biotechnology
  • Medical devices and equipment
  • Consumer products and services
  • IT Services
  • Media and entertainment
  • Industrial/energy
  • Chart: Major Market Segmentation for the Venture Capital & Principal Trading Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Venture Capital & Principal Trading

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Venture Capital & Principal Trading Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Venture Capital & Principal Trading Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Venture Capital & Principal Trading Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • S&P 500 index (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Financial Asset
  • A nonphysical asset such as shares, bonds, notes and bank balances.
  • Hedge Fund
  • A fund that uses advanced investment strategies such as leveraged, long, short and derivative positions in both domestic and international markets with the goal of generating high returns.
  • Initial Public Offering (Ipo)
  • The first sale of stock by a private company to the public
  • Pooled Fund
  • A vehicle used to pool the funds of a number of investors for investment by one manager, including hedge funds and private-equity funds.
  • Viatical Settlement
  • A sale of life insurance policy by the policy owner before it matures.
  • What Our Customers Say

    Why buy this report?

    The Venture Capital & Principal Trading industry market report contains data and analysis of the most influential current and future trends shaping the industry. IBISWorld’s in-depth industry market research is presented in a logical, user-friendly format, and provides growth and profit forecasts for a five-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
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    This report on Venture Capital & Principal Trading:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Venture Capital & Principal Trading market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Venture Capital & Principal Trading, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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