Venture capital investment in the U.S. are projected to reach $100 billion which would be the largest amount in the country’s history. An explosion of funding has already surpassed last year’s raise of $82 billion. The increase is the result of a major shift in U.S. policy and regulation, as well as start-ups. New companies have raised almost a third of the venture capital payload this year. Start-ups, also known as Unicorn companies, are new companies that are valued at over a billion dollars.
Ten fund companies have raised over $500 million and five have raised over $1 billion. These are astonishing numbers and they’re expected to continue well into the year 2020. By comparison, Europe has barely raised €15 billion. Most of these companies are exiting by way of buyouts which are also coming into all-time highs. The larger established corporations need new revenue streams and are seeking the next Facebook or Microsoft. When these start-ups bear fruit, there will be some very happy investors.
