VC funds in regions such as Europe are catching up with North America in terms of their size although North America is still where it's at in terms of sheer scale and reach.

The average size of venture capital funds in Asia and Europe has more than doubled over the past seven years, narrowing the gap against the US although Uncle Sam still accounts for the lion’s share of VC investments, figures from Preqin, the research group, show.

At the end of last year, the average fund size in the US was $161 million, up from $154 million in 2010; in Europe, the size has surged to $142 million from $67 million, and in Asia, it has skyrocketed to $173 million from $69 million. In the rest of the world, the average size has gone up to $80 million from $55 million.

North America-focused funds continue to dominate the venture capital fundraising market, largely due to the high number of managers located in the US, the report said.

Proportionally, regional market share has remained relatively unchanged from 2014, with funds focused on North America, Europe, Asia and Rest of World securing 61 per cent, 13 per cent, 23 per cent and 3 per cent of capital raised in 2016 respectively, Preqin said.

“The venture capital industry has rebounded from what was a disappointing end to 2016 for many,” the report said.

“With a record number of funds in market, along with a push for venture capital funding in Asia, the regional shift within venture capital has continued. While North America remains on top across all areas of venture capital, dry powder levels, along with deal activity and fund performance, have been up for Asia this year. Still, in a sluggish exit environment, North America has remained consistent, accounting for over 80 per cent of the aggregate value of venture capital exits in 2017,” it continued.

North America’s dominance of the VC space continues in other ways, the figures show. As at April 2017, 97 venture capital funds have reached a final close in the year so far, securing $13 billion in aggregate capital. North America-focused vehicles have accounted for two-thirds of both the number of funds and the capital raised so far this year.

There is potential for fund-raising totals achieved last year to be matched this year, Preqin said, noting that there are a record 995 VC funds on the road seeking to raise a total of $132 billion, having already secured $36 billion in interim fund closings.