Can we know how many venture capital firms are in the US?
This is a tricky question, and we do have the answer.
As we know, the US startup ecosystem is enormous.
In this quick article, you’ll get to meet how many VC firms are in the US territory. And most importantly, in what they’re investing.
1.What is a venture capital firm?
VC firms are financial institutions that seek new companies to invest in.
Their primary focus is on those that are small-sized and have a high risk, but show a lot of potential.
The riskier the investment, the better.
Their target is to receive a high return. They increase the value of these companies as they grow and help them escalate to success.
2.How many venture capital firms are in the US? What statistics say.
According to data from PitchBook, VCs experienced significant consolidation, with 6,175 active VC firms, down from a peak of 8,315 in 2021.
Their deal values increased by about $47 billion in 2024 compared to the previous year, despite 936 fewer deals.
This indicates larger average deal sizes, driven by late-year mega-rounds and investments in AI startups.
3.Which regions have the most VCs?
- California: California showed its economic power last year by attracting $97 billion of VC investments, coming from a total of 396 deals. Having the Bay Area as the most powerful and versatile of them all.
- New York: NYC follows behind, it is a financial and business powerhouse with a growing startup ecosystem. Receiving $28 billion from 133 deals.
- Denver (Colorado): Denver has poured $17 billion in VC funding over the past few years. Helping investment areas of tech and gaming.
- Chicago: Chicago is a substantial financial and business hub with an increasing startup presence. It is actively investing in areas such as technology, healthcare, fintech, and consumer goods.
- Miami (Florida): Miami has become a rising VC hub due to its business-friendly policies, crypto and fintech boom, and influx of investors relocating from NY and SF.
4.What is the investment focus of VCs in the US?
While VCs in the US can vary depending on the region or state, each firm has its own strategy. Most US firms focus on:
- Tech-first solution.
- Startups with large addressable markets.
- Founders with strong teams and domain expertise.
Sectors like:
- Tech/Machine Learning and AI
- Gaming and entertainment
- Fintech
- Healthcare and Biotech
- Consumer tech and marketplaces
In summary
How many venture capital firms are in the US?
According to the latest statistics, more than 6k VC firms are actively investing in new companies.
And what does this mean to you? If you run a startup, and you are looking for investors, the US is where your top location should be.
We invite you to check out our blog here to learn so much more about the best VC firms in the United States
