Putting Venture Capital in Context

Interesting stat from a new McKinsey report on global capital markets:

Total market capitalization of U.S. equities: $14.3-trillion (2003)

Total U.S. venture capital under management: $100-billion (2003)

Put another way, U.S. venture capital assets are roughly 0.7% of U.S. equity capitalization, a vanishingly small number.

Comments

  1. Nigel deGruyther says:

    Agreed. There is entirely too much money chasing too few good deals in venture capital.
    This goes a long way to explaining why, on average, the rates of return on VC money are below target rates of return.