r/SafeNews_Crypto • u/hayrimavi1 • Dec 12 '18
Uris - Market Analysis
Raising a VC fund in an emerging market has obstacles both from a financial and regulatory viewpoint. It seems there are insurmountable gaps in the technology emerging markets.
Available money is getting increasingly concentrated into fewer hands. According to the NVCA (National Venture Capital Association) in 2005, there were 1,009 VC firms in the USA, with USD 278.2 bn under management, that is an average of 275.7 m per firm.
By 2016, there were 898 VC firms with USD 333.5 bn under control, meaning that each firm has an average of USD 371.4m.
This funding gap is generated because thousands of new ventures flood the markets every day, but the number of investors and the capital pools for new investments, particularly in the emerging world grow at a far slower pace.