What exactly is venture capitalism? In the simplest of terms, it is the money provided by investors to startup firms and small businesses who show potential growth for the future, and is generally thought of as “good capital”. It provides and promotes innovation, and long-term investment, though not all industries are lucky or fortunate enough to attract enough of the venture capital.
From the perspective of the entire globe, the United States leads in venture capital with an estimated 58.8 billion dollars being invested across the country for the sake of venture capitalism in 2015.
There are many industries that attract venture capital investment, but the industry that leads the investment charts is software investment. The software investment accounts for 36.2% of US VC funding, while biotechnology also leads the charts, coming just second to software investment, with a percentage of 17.3%. Media and entertainment are also a part of the top three, accounting for 9.5 percent of the US VC funding. Other areas that are bound for more growth and innovation include the likes of information technology services, medical devices, and the industrial energy.
Consumer products and financial services are also part of the investment plan, however, these sectors account for very little of the significant investment. With the ever greater use of technology and technology related products, it comes as no surprise that such a massive amount of VC investment goes into software companies. Phone-based apps serve as some as the most valuable start-ups in the world.
