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These are the industries attracting the most venture capital

Venture capital - the money provided by investors to startup firms and small businesses showing potential for long-term growth – is generally thought of as “good capital”

By: EBR - Posted: Friday, February 17, 2017

With the dawn of the Fourth Industrial Revolution heralding an ever-greater use of technology, it is no surprise that much VC investment goes to software companies. In the second quarter of 2016, the value of VC investments in the US software industry amounted to approximately $8.74 billion dollars.
With the dawn of the Fourth Industrial Revolution heralding an ever-greater use of technology, it is no surprise that much VC investment goes to software companies. In the second quarter of 2016, the value of VC investments in the US software industry amounted to approximately $8.74 billion dollars.

by Rachel Hallett*

It promotes innovation and long-term investment, but not all industries manage to attract enough of it.

Industry investment

In terms of global venture capital investment, the United States is leading the way-with an estimated $58.8 billion invested across the country in 2015.

Software investment accounts for 36.2% of US VC funding, while biotechnology comes second with 17.3%. Media and entertainment rounds off the top three with 9.5%.

Other areas of growth and innovation include information technology services, medical devices and equipment and industrial energy.

Lower levels of investment are in financial services, consumer products and telecommunications.

Growth of technology

With the dawn of the Fourth Industrial Revolution heralding an ever-greater use of technology, it is no surprise that much VC investment goes to software companies. In the second quarter of 2016, the value of VC investments in the US software industry amounted to approximately $8.74 billion dollars.

Phone- based apps are some of the most valuable start-ups in the world with many using VC funding to enable global expansion.

*Formative Content
**First published in www.weforum.org

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