The early venture capital market formed by ARD Corporation and other early VC firms was passive in nature and venture capitalists back then, added little value to the new firms. Soon the demand to raise bigger funds, led to the consolidation of the market and only few big players, managing bigger funds, were prominent in VC. After the initial consolidation of the VC market, the next major evolution in VC was the continuous plunge of the global IPO market.
During the last decade, abundance of funding opportunities and appearance of new investors in the VC market have made it easy to raise capital and exit options which triggered M&A activities and has changed mindset of the investors who now think it is better to sell their portfolio firm to a larger corporation.
Another notable change is the increased activity of the foreign investors in domestic VC market which effected geography of global and domestic venture capital activities. Despite global expansion of the venture capital, certain cities in each country dominate the VC environment in that country. Only 25 cities represent 75% of overall venture investments worldwide and among these 25 cities the top 6 cities account 37.5% of global venture capital activity.