Useful Stats: U.S. Seed and Early Stage Venture Capital Investment by State, 2008-13

February 06, 2014

Last year, U.S. venture capitalists invested about $10.7 billion in seed and early stage companies, 17.1 percent higher than 2012, according to data from the National Venture Capital Association (NVCA) and PricewaterhouseCoopers (PwC) Moneytree survey.  Though the overall venture capital (VC) market has returned to about the same level of activity as before the economic crisis, investment in seed and early stage companies has grown by more than a third. Most of this increase is attributable to growth in early stage investment, but seed activity has grown as well (as discussed in another article).

Previously, SSTI reported on a number of trends in the U.S. VC market during the period from 2008-13, including overall dollars and deals by state, per capita dollars and deals by state and each state’s share of national venture capital activity. SSTI has now prepared tables of seed and early stage venture investment and average deal size by state during the 2008-13 period. Download the tables in Excel format (xlsx)…

While the U.S. seed and early stage capital market has never shown consistent growth year-after-year, it has generally trended up over the past half decade. Last year’s $10.7 billion is 37 percent higher than investment levels in 2008. Over the past five years, activity has risen and fallen but, as with the larger venture capital market, activity has somewhat leveled out since 2011. Seed and early stage investment represented 36.4 percent of the whole venture capital market in 2013.

The top states have remained fairly consistent, led by the largest VC markets: California, Massachusetts, New York, Washington, Maryland, Virginia and Texas.  Last year, many states posted impressive gains, though it remains unclear whether this growth is indicative of a longer-term trend.  Several states, however, including Maryland, New York, Washington and Illinois, have quickly and consistently grown in such a way that would indicate a more permanent major markets for early investment.

In terms of deals, Michigan stands out as a state that ranks much higher dealflow than its dollar totals. Michigan ranks only 22 in seed and early stage dollars, but 8th in deals, which suggests a large number of very small deals. Though less pronounced, Ohio shows a similar affinity for smaller deals, ranking 11th in dollars and 7th in deals.

Reflective of this tendency toward smaller deals, both Michigan and Ohio have average deal sizes that are lower than the national median amount. Only seven states have an average deal size smaller than Michigan, while Ohio ranks 28th in deal size (from largest to smallest). Arizona had the largest average deal size in 2013, followed by Delaware, South Dakota and Iowa. Although these are less activite venture capital markets, the list of top states for average deal size also includes larger markets, such as Georgia, Maryland and California.

Download the tables in Excel format (xlsx)…

 

U.S. Seed and Early Stage Venture Capital Investment Dollars by State, 2008-13

State 2008 2009 2010 2011 2012 2013
U.S. Total $7,811,940,300 $6,674,677,100 $7,582,657,900 $10,006,275,700 $9,136,896,000 $10,701,766,200
AK $0 $0 $0 $0 $0 $0
AL $0 $14,750,000 $0 $0 $2,610,000 $4,025,000
AR $0 $0 $0 $0 $0 $3,050,000
AZ $44,270,000 $9,499,900 $28,299,900 $7,058,000 $11,006,000 $58,048,300
CA $3,818,113,000 $3,074,579,500 $3,494,004,500 $5,089,587,600 $4,921,696,400 $5,598,150,800
CO $223,356,300 $207,649,900 $136,550,200 $334,206,800 $300,635,700 $148,164,900
CT $173,441,000 $140,881,900 $49,274,700 $21,504,000 $67,823,200 $59,698,700
DC $20,500,000 $19,300,200 $48,790,000 $29,610,000 $20,521,000 $78,387,700
DE $20,998,900 $18,609,100 $5,337,000 $7,635,000 $788,000 $1,254,000
FL $96,687,500 $109,095,100 $54,700,200 $79,225,100 $21,676,000 $60,404,000
GA $91,805,100 $50,788,100 $58,821,300 $62,586,100 $48,611,100 $70,165,900
HI $7,400,000 $7,271,000 $5,299,900 $0 $0 $0
IA $4,699,900 $4,256,000 $1,500,000 $0 $5,000,000 $16,499,900
ID $2,930,000 $7,000,000 $250,000 $0 $0 $0
IL $58,723,400 $57,300,200 $99,106,300 $207,104,300 $162,030,300 $144,417,100
IN $14,691,200 $47,282,000 $10,729,100 $34,250,000 $28,220,100 $10,288,000
KS $13,965,000 $2,291,000 $29,731,000 $25,548,100 $44,049,700 $28,227,200
KY $20,217,000 $8,150,000 $14,100,000 $8,606,000 $793,000 $6,750,000
LA $6,865,400 $2,546,200 $1,051,000 $5,734,000 $225,200 $4,650,100
MA $944,476,100 $1,088,140,100 $1,245,095,600 $1,610,922,000 $1,406,964,100 $1,478,193,200
MD $99,597,900 $148,811,900 $145,255,900 $57,397,200 $101,936,300 $236,961,000
ME $4,145,000 $5,200,000 $2,583,500 $625,000 $7,787,200 $1,055,000
MI $62,135,100 $35,921,000 $131,960,000 $34,390,900 $71,673,600 $49,974,400
MN $94,984,100 $104,747,800 $93,708,300 $107,983,800 $57,610,900 $83,820,200
MO $43,801,000 $640,000 $27,900,000 $11,239,200 $15,613,000 $60,006,800
MS $0 $1,250,000 $0 $1,000,000 $6,153,000 $0
MT $660,000 $0 $1,910,000 $3,215,000 $2,250,000 $25,000
NC $87,854,000 $125,037,700 $129,936,400 $113,113,200 $29,224,000 $100,917,400
ND $4,455,900 $2,700,000 $0 $4,000,000 $0 $0
NE $0 $0 $2,000,000 $0 $3,115,000 $10,494,900
NH $24,952,000 $15,833,000 $23,544,100 $18,856,000 $31,677,000 $53,326,100
NJ $205,909,600 $137,265,000 $187,613,800 $153,154,200 $112,634,900 $36,123,300
NM $5,177,000 $1,068,000 $5,455,100 $39,000,000 $7,000,000 $2,368,000
NV $500,000 $5,400,000 $0 $2,500,000 $5,095,000 $1,620,200
NY $501,576,800 $437,960,900 $519,537,100 $873,242,500 $681,398,200 $1,021,659,500
OH $107,379,900 $40,227,000 $66,411,500 $114,675,200 $77,572,500 $128,219,000
OK $15,154,900 $3,500,000 $13,000,000 $615,000 $33,036,000 $6,983,900
OR $41,925,800 $6,040,000 $30,073,900 $31,432,800 $23,336,000 $29,834,900
PA $254,890,400 $153,290,200 $138,744,000 $194,619,400 $146,625,900 $149,630,100
PR $0 $0 $0 $0 $100,000 $0
RI $11,515,200 $15,100,000 $26,760,000 $13,032,000 $8,684,000 $7,807,900
SC $7,990,100 $2,000,000 $1,200,000 $6,500,000 $0 $10,000,100
SD $500,000 $700,000 $0 $1,100,000 $0 $0
TN $44,595,000 $27,628,200 $46,446,200 $19,808,000 $17,105,400 $34,253,400
TX $179,492,600 $227,954,600 $302,342,000 $293,188,700 $190,232,500 $155,502,400
UT $73,588,600 $82,378,900 $30,505,500 $113,936,300 $35,764,100 $79,096,000
VA $93,580,200 $20,194,900 $62,326,600 $26,690,000 $48,387,200 $194,362,900
VT $750,000 $0 $1,475,000 $9,503,200 $1,500,000 $7,041,200
WA $224,471,500 $189,994,000 $299,878,300 $228,781,100 $353,466,500 $454,003,300
WI $55,687,900 $13,918,800 $8,950,000 $7,000,000 $11,200,000 $16,304,500
WV $0 $0 $500,000 $2,100,000 $14,068,000 $0
WY $1,530,000 $0 $0 $0 $0 $0
Unknown $0 $525,000 $0 $0 $0 $0

 

Download the tables in Excel format (xlsx)…

 

Michigan, Ohiouseful stats, capitalFile 020614.xlsx