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.

Related posts:

  1. Venture capital continues the slide
  2. Pouring, Drinking, and the Allocation to Venture Capital
  3. Pining for the Glory Days of Venture Capital
  4. The Venture Capital Cycle, Second Edition
  5. Newbies Flood Venture Capital (Again)

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.