A Comparative Historical Analysis of the Evolution of the Venture Capital Industry in the Economic Regions of the United States of America, Europe, and China

Abstract

Venture capital (VC) provides a platform to empowered individuals with financial constraints to transform their ideas into business models and attain commercial success. This article reviewed the growth and trends of VC industry across various regions such as the United States of America (USA), Europe, China, and India. Initially, VC firms flourished and developed in the USA and still it harbors the largest VC industry. From the USA, VC firms spread to Europe and then much later to emerging economies like China and India. Although the VC ecosystem had started late in China, it had registered higher growth when compared to Europe in terms of VC investment. China has become the second largest VC market. It was backed by government initiatives, vast market opportunities, and home-grown technology firm investments. India has started observing growth in VC space later than China but had ample opportunities to allow for a surge in VC activities.