Venture Capital & Principal Trading in the US

The bigger they get, the harder they fall

The years 2007 and 2008 have proven to be quite volatile, to say the least, for this industry. The result requiring a long period of recovery. However, a rapid change of technological innovation is set to improve efficiency and effectiveness in reducing costs and managing risk...with an initial price. In a growing but highly volatile and regulated industry, this is a draw card for existing competitors, especially in a highly fragmented and reasonably globalized environment. This will remain to be the labor intensive professional industry where wages skyrocket along with competition.

This industry comprises establishments primarily engaged in acting as principals (except investment bankers, securities dealers, and commodity contracts dealers) in buying or selling financial contracts generally on a spread basis. Principals are investors that buy or sell for their own account. Although investment bankers also act as principals in securities trading on a spread basis, industry participants, unlike investment banks who hold special licenses for such activities, do not undertake additional activities, such as engaging in the underwriting, origination and market making and maintenance of securities issues. This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.