An Industry Analysis of Global Venture Capital Investments, 2008 - 2013 - May 2013

by Jonathan Parker

  • 02 May 2013
  • PE

An analysis of global venture capital investments by industry shows that in each year since 2008, the same industries have constituted the top five sectors in terms of the number of venture capital financings. The internet sector has seen more than 20% of the global number of venture capital deals in each year and has been the most common area for venture capital investment in every year except for 2009, when the healthcare sector received a slightly higher number of investments. The healthcare industry was the second highest in each other year since 2008, although for the year so far, the number of investments in software and related companies has topped those in healthcare. This is the first year since 2008 that the software industry has moved from its place as the third most prevalent sector for venture capital investment. The telecoms industry and companies falling into the ‘other IT’ category complete the top five areas of investment since 2008.

In terms of the proportion of the global aggregate value of venture capital deals attributed to each industry, healthcare comes out on top in all years except for 2011 and 2013 so far. The internet sector has been the second most prevalent in each year except for 2011 and 2013 to date, where it has replaced healthcare as the industry with the highest aggregate value of investments. Software and related companies received the third highest proportion of the aggregate value of venture capital deals in 2008 and 2009, before falling to fourth place in 2010 and 2011, as the clean technology industry moved into third place. However, in 2012 and the year to date, the software industry has regained its place as the third most prevalent for venture capital investment in terms of aggregate value. The telecoms industry, which includes mobile app development firms, amongst others, rose to fourth place in 2012.

Since 2008, the most active firms in the internet sector have been Accel Partners, First Round Capital, SV Angel and Sequoia Capital. Those with the highest number of healthcare investments across the period are New Enterprise Associates, Domain Associates, Versant Ventures and OrbiMed Advisors. Finally, the most active investors in software and related companies since 2008 are Intel Capital, Sequoia Capital, New Enterprise Associates and Accel Partners.

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