Media & Entertainment Venture Capital Industry: VCs look to the leading companies

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The US Media and Entertainment Venture Capital industry is set to gain ground over the next five years, with industry revenue is expected to jump 8.5% per year to $1.4 billion by 2016, according to latest report from IBISWorld, the nation’s largest publisher of industry research. More initial public offerings (IPO) will take place over the same period, prompting many industry players to pour more money into early stage companies. Heightened stock market activity will pave the way for more investment in the market, increasing the amount of funds available for industry players to invest and the management fees earned from doing so. Following the wave of interest in new media during the past five years, more new firms will start up, providing new ways to consume media and entertainment. For this reason, industry research firm IBISWorld has added a report on the Media and Entertainment Venture Capital industry to its growing Alternative Financing report collection.

IBISWorld Market Research

IBISWorld Market Research

Consumers are increasingly using the internet and mobile devices to interact with media and share content with friends

The US Media and Entertainment Venture Capital industry is set to gain ground over the next five years, with industry revenue is expected to jump 8.5% per year to $1.4 billion by 2016, according to latest report from IBISWorld, the nation’s largest publisher of industry research. More initial public offerings (IPO) will take place over the same period, prompting many industry players to pour more money into early stage companies. Heightened stock market activity will pave the way for more investment in the market, increasing the amount of funds available for industry players to invest and the management fees earned from doing so. Following the wave of interest in new media during the past five years, more new firms will start up, providing new ways to consume media and entertainment. For this reason, industry research firm IBISWorld has added a report on the Media and Entertainment Venture Capital industry to its growing Alternative Financing report collection.

The Media and Entertainment Venture Capital industry slightly declined over the past five years, with revenue expected to decrease 1.7% per year to $962.7 million by year-end 2011. The recession resulted in a significant drop in investor confidence and stock market activity, limiting the amount of money for industry firms to invest with. The industry has bounced back in line with the economic recovery, though, as global stock markets increased and initial public offerings (IPO) became more commonplace, resulting in a jump in industry revenue. Several high-profile IPOs and planned IPOs have bolstered the industry and increased interest in investing in start-up media companies. Industry revenue will increase 34.3% in 2011 as successful IPOs buoy the industry's top line.

According to IBISWorld analyst, Justin Molavi, the shift from traditional media to digital media has created immense opportunities for new companies as they seek to capture demand from consumers. “Consumers are increasingly using the internet and mobile devices to interact with media and share content with friends,” says Molavi. As such, many companies have entered the space, vying for the industry's investment dollars. Additionally, many new companies have been able to monetize their businesses at earlier stages, due to the existence of mobile payment platforms and internet advertising. This trend has lessened the risk of initial investment by industry firms because these companies already have some revenue on the books.

The next five years are set to be brighter for the industry and benefit major companies including, Sequoia Capital and Accel Partners. Stock market value growth will lead to higher company valuations, prompting many industry players to invest more in new media companies. More IPOs will also take place and push industry revenue higher as more companies hit the public marketplace. Higher investor confidence will also result in heightened fund values, making more money available for investments over the next five years. Media and entertainment Industry will continue to be hot space with new companies vying for consumer attention and developing innovative platforms to consume media. As a result of these trends, industry revenue is expected to increase 8.5% per year to $1.4 billion in the five years to 2016.

For more information, including latest health trends, statistics, analysis and market share information on Media and Entertainment Venture Capital , download the full report from IBISWorld on the Media and Entertainment Venture Capital industry

IBISWorld Industry Market Research Reports Contain:

About this Industry
Industry Definition
Main Activities
Similar Industries
Additional Resources

Industry at a Glance

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle

Products & Markets
Supply Chain
Products & Services
Major Markets

Globalisation & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry

Major Companies

Operating Conditions
Capital Intensity

Key Statistics
Industry Data
Annual Change
Key Ratios

Jargon & Glossary

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About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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James Karklins
IBISWorld
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