Venture Capital (VC) Management Software Market Size, Share, Growth, and Industry Analysis, By Type (Cloud-Based & On-Premises), By Application (SME’s & Large Enterprises) and Regional Insight and Forecast to 2032

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VENTURE CAPITAL (VC) MANAGEMENT SOFTARE MARKET REPORT OVERVIEW

The Venture Capital (VC) Management Software Market size was valued at approximately USD 0.25 billion in 2023 and is expected to reach USD 0.60 billion by 2032, growing at a compound annual growth rate (CAGR) of about 10.5% from 2023 to 2032

Venture Capital (VC) management software is type of exhaustive investment management for VC businesses wherein VC management software is used to find, track, and manage deals for firms. This software serves as a central hub for VC activity, allowing them to track deals, maintain their cap tables, manage all of their investments, and limited partnerships (LPs). Different aspects of VC management (like cap table management, deal flow management, portfolio management, and LP management) have a variety of point solutions. VC management software combines all of these aspects into a single tool that is particularly designed to be an overall exhaustive solution for VCs. In addition to the basic features set, VC management solutions are gaining fund administration capability.

COVID-19 IMPACT

"Market Growth Restrained by Pandemic due to Economic Breakdowns and Regulations."

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.

The pandemic negatively impacted VC management software market due to economic breakdowns and the regulations and lockdowns imposed by the governments. There was a decline in number of industries which resulted in reduced demand forventure capital investment services. Pandemic also created less momentum in the investment pool and extra risk repugnance as venture capital management activity had reduced on a global scale. Moreover, small and medium businesses were halted and most of the businesses liquidated due to pandemic. In addition, factors like portfolio's valuation deduction, the volatility of the foreign exchange market and complexities in current investments contributed to the decline in SME's assets' financial performance. Furthermore, Initial Public Offers (IPO), mergers, and acquisitions were also delayed. Thus, venture capital management continuously declined because of the investors’ search for well-established companies for their investments. While the market eventually recovered with time, the immediate impact of COVID-19 was predominantly negative for the global market.

LATEST TRENDS

"Increasing Adoption of Cloud-Based Solutions to Drive Market Growth"

Among the new developments of the international VC management software market are the ever-growing popularity of cloud-oriented products, the added capabilities of the AI technologies and analytics, and the boost of data-driven decision-making. VC firms now have an option of those cloud-based software which makes their business more convenient and secure or in other words, access to them all the time and no risk of loss of data. AI and Data analytics equip the firm with better perceptions and forecasts to enable them to make investment decisions based on the acquired comprehension and analytics in general Furthermore, the data-driven tactic is widely used to strengthen the system and cut redundant processes that are new dominoes in the management of VC software. To stay in business, the companies shall continually work on enhancing productivity which will attract the investors seeking to increase ROI. As such, the VC investment management is becoming more and more popular in the global market.

VENTURE CAPITAL (VC) MANAGEMENT SOFTARE MARKET SEGMENTATION

By Type

Based on type the global market can be categorized into Cloud-Based & On-Premises:

• Cloud-Based: Cloud-based VC Management Software is hosted on remote servers, providing users with easy and flexible access through an internet connection.This helps venture capital firms manage their investment repository, streamline deals finalization, track financial performance and collaborate with stakeholders.

• On-Premises: On-premises VC Management software is installed and operated locally within a company’s infrastructure. It also provides with data security, compliance fulfillments, and customization requirements.

By Application

Based on application the global market can be categorized into SME’s & Large Enterprises.

• SME’s: SMEs can utilize venture capital (VC) management software to efficiently manage their venture capital investments, monitor the performance of their portfolio companies, and track their financials.

• Large Enterprise: Large Enterprises can benefit from venture capital (VC) management software by streamlining their investment process, tracking their investments across various stages, and conducting thorough due diligence.

DRIVING FACTORS

"Rising Number of Venture Capital Firms has Boosted the Market"

One of the key driving factors in the global venture capital (VC) management software market growth is the rising number of venture capital firms. Depending on the respective appetite for growth, a venture capital investor may expect a greater return. Although venture capital investing is not accessible to an average investor, it may be a key influencer of economic growth for affluent individuals and institutions due to its ability to generate high profits. Moreover, the purpose of establishing the venture capital firms is to receive great returns by at least double margins. Therefore, this is one of the major driving factors of the venture capital investment market.

"Rising Number of Retail Investors Expand the Market"

Another driving factor in the global venture capital (VC) management software market is the rising number of retail investors. With retail investors, the market is blessed with flexibility as their volume supersedes any scope of collusion or dominance. Even so, entrepreneurs face no undue pressure to scale their businesses and can focus on sustainable growth. In addition, for the retail investor revolution to materialize, blockchain technology, and crypto have a major role to play. Their ability to democratize the venture capital market and remove the barriers of entry is vital. Moreover, using smart contracts and tokenization, venture capital can be made accessible to all retail investors. Additionally, using bitcoins as a sign of worth and ownership makes investing simpler. Therefore, technological advancement in the field of social media analytics has contributed to their growing popularity, driving market growth worldwide.

RESTRAINING FACTORS

"Time Taking Process of Venture Capital Exits to Impede Market Growth"

One of the key restraining factors in the global venture capital (VC) management software market is the time taking process of venture capital exits. Exits are a primary element of the venture capital market which enables the managers to crystalize the paper gains and return the proceeds to the LPs. The sign of positive exits comes through mergers & acquisitions and IPOs, and the fact that their number has fallen is a sign that the corporate venture capital market is holding back. Moreover, in current times, the time to exit an IPO for a startup has become 8.2 years. Therefore, longer the holding period of investments, the more negative implications it has on the IRR performance, meaning greater stress on the entrepreneurs to return the capital in a timely manner. Therefore, this is one of the major factors that hampers the growth of venture capital (VC) management software.

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VENTURE CAPITAL (VC) MANAGEMENT SOFTWARE MARKET REGIONAL INSIGHTS

"North America to Dominate the Market due to Presence of many Established Venture Capital Firms"

The market is primarily segregated into Europe, Latin America, Asia Pacific, North America, and Middle East & Africa.

North America has emerged as the most dominant region in the globalventure capital (VC) management software market share due to several factors. The region's dominance is attributed to the fact that the market is currently growing due to the market's overall expansion evident from the increase in startups, financial institutions and mutual funds venture capital firms. In addition, rise in investment business across diverse sectors such as healthcare, biotechnology, agriculture, media & entertainment are prompting venture capital investment market growth. The rising demand for VC Management Software for the purpose of organizing investment processes and manage portfolio of companies, further contribute to its dominance in the global market share.

KEY INDUSTRY PLAYERS

"Key Industry Players are Shaping the Market through Innovation, Sustainability, and Global Reach"

The venture capital (VC) management software market is significantly influenced by key industry players that play a pivotal role in driving market dynamics and shaping consumer preferences. The key players in the market include large multinational corporations, innovative startups and financial institutions that are actively engaged in strategic initiatives. Many of them aim for the digital transformation and invest in modern technology like artificial intelligence (AI) and blockchain to ease operations potentials and enhance customer satisfaction. Sustainability, environmental, social, and governance initiatives are also one of the priorities of the major economies committing to reduce their carbon footprint, promote DEI policy, and make investments with ethical practices. Additionally, top companies are seeking to enter into emerging markets, buildup strategic partnerships, and adapt to altering customer behaviors and preferences. These efforts reflect the focus shifted toward innovation, sustainability, and global reach.

List Of Top Venture Capital (VC) Management Software Companies

• Carta Worldwide (Canada)
• 4Degrees (Chicago)
• Ledgy (Paris)
• EquityEffect (New York)
• eFront (France)
• investory.io ("Vienna)"
• Kushim (France)
• Relevant Equity Systems (Massachusetts)
• Totem VC (New York)
• Venture360 (Missouri)
• Visible.vc (Chicago)
• Zapflow (Finland)

INDUSTRIAL DEVELOPMENT

November 2022:Index Ventures announced the launch of a $300m (£253m) seed fund aimed at early-stage startups.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated timeframe. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.