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Here, the analysis have been done and recommendations have been suggested from the point of view of a new venture capital firm in US which is just a start-up.

Which categories of companies have received the major chunk of investment from venture capitalists of US?

The graph explains the pictorial representation of total amount of investments by the venture capitalists category/industry wise.  Here, as BioTech has received maximum investment in US, I being a start-up would prefer investing major chunk in BioTech category  After Bio-Tech it is consumer web then, other category has received the major investment.  So, basically this graph helps in deciding which category/ industry to invest in based on competitor analysis.

Out of top VCs of US which VC has invested in which category and how much? How is the division of total financing done in each category?


The graph explains the bifurcation of investment (category wise) of top 20 VCs of US For e.g if we take top 2 companies, they have invested majorly in Bio-Tech but if we take the 3rd ranking company it has invested majorly in other category Out of top 20 VCs, 13 companies have majorly invested in Bio-tech category, while 2 of them have invested majorly in other category and this way it goes on. The categories are sorted in descending order, so the after Bio-tech the next major receiver of finance is Other and this way the sequence goes on. So, I being a start-up would also prefer the above sequence of investing in industry.

Out of top 4 Venture capitalists in US (based on financing) which VC has invested in countries other than US?

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In order to expand the horizons I would surely like to know which are the other countries where-in these VCs invest and how much. So, it can be seen that New enterprise Associates which is the topmost in VC based on financing invests majorly in India after US. India has topmost growth opportunities and this is where the VCs are making money from. Out of top 4 VCs, three of them have invested majorly in India after US. So, as it is said that do not put all your eggs in one basket, similarly I can bifurcate my investment country wise as per my competitor’s behavior.

Out of top 20 companies where VCs have invested their money, which VC has invested in which company and how much?

The above graph shows that out of top 20 companies wherein the maximum investment has been done, which venture capitalist has invested in which company and how much.  Accel partners and Red point Ventures have put in maximum money in Next Gen Networks company while New Enterprise associates has distributed its investments in many of the companies simply following the fact that don’t put all your eggs in one basket. It has basically applied portfolio management techiques and has distributed its investment as well as risk. It is the only VC which has invested into all he top 4 categories.

Conclusion

Recommendations
Thus, as a start-up it is preferable to invest majorly in Bio-Tech category Next, the company should distribute its investments category wise, country wise as well as company in each category wise. After Bio-Tech the next preferred category is other, then consumer web and so on. This way the investment should be distributed category wise. As a start-up we should prefer investing in top 20 preferred companies only because the risk gets distributed and these top 20 companies are more profitable. In order to arrive at a better decision, the investment data should be compared with the returns/profits of the VCs. This will give a proper justifiable decision to invest.

Particulars

Overall data analysis

Preferred Category

Bio-Tech

Preferred country for investment after US

India New Enterprise Associates

Highest investor (VC)

Topmost preferred companyFinance wise

Next G Network