The Heart of Innovation
Being the epicenter of venture capital (VC) investment is a factor in why the U.S. is an excellent place to find innovative companies rapidly growing their earnings. Investors looking for companies at the forefront of their industry should consider opportunities in the American market.

  • Committing significant capital to funding companies during their critical pre-IPO period contributes to the United States’ status as a global leader in innovation. By assisting businesses when they are most vulnerable, American VC investors allow emerging companies and their innovations to thrive.

  • VC investment in the United States outstrips Europe’s VC spending by more than 300%. The United States also surpasses Europe in research and development spending (2.83% of GDP compared to Europe’s 1.85%1).

  • Additionally, the World Intellectual Property Organization ranks the United States as number one globally in innovation quality, a high-level indicator that examines the caliber of universities, number of scientific publications and international patent filings.

  • United States VC investment has enabled cutting-edge companies such as Alphabet and Facebook to develop their leading products. The American stock market contains many innovative companies and given that the number of global IPOs is set to reach a 10-year high this year, the United States will offer even greater access to pioneering businesses.2

1 As of 2017, using 2017 forecasted gross expenditures on R&D from R&D Magazine.

2 EY (2017) “Global IPOs on Course for the Busiest Year Since 2007.” EY Global IPO Trends.

The views expressed are the views of Fred Alger Management, Inc. as of November 2017. These views are subject to change at any time and they do not guarantee the future performance of the markets, any security or any funds managed by Fred Alger Management, Inc. These views are not meant to provide investment advice and should not be considered a recommendation to purchase or sell securities.

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