Venture capital is the driving force behind the rapid growth and scaling in startups
The fact that venture capital is the basis for many growth and success stories for startups is nothing new: capital investments make it possible for young companies to focus on growth. Typically, such companies enjoy a high degree of entrepreneurial freedom and tolerance during the implementation phase - they experiment, adapt, and optimize at a rapid pace. In many cases, the key measure of success is sales growth. The objective is to achieve a long-term, competitive position in established industries as quickly as possible with new, innovative concepts and/or approaches.
For decades, investors have been contributing enormous sums to the future success of young companies with innovative ideas and business models - and the trend continues to be on the rise. In 2018, over $US 250 billion VC was invested; the most recent focal points were AI, Mobility, Health, and Fintech. By way of comparison, the investment volume in 2013 averaged around $US 80 billion (source: KMPG Venture Pulse Q4 2018).
Regarding the investment strategy of venture capital investors, success across the entire startup portfolio is more important than the obligatory financial success of the individual venture: what is essential here is that the ROI of a few startups provides profitable co-financing for all other "wagers." This sets VCs apart from investors who want to achieve strategic advantages through participation - for example, companies that not only hope for financial advantages from working with startups, but also seek access to recent technologies, innovations, and highly motivated young talent.