Useful Stats: U.S. Venture Capital Per Capita and Share of National Total by State, 2008-13

January 29, 2014

After hitting an all-time high in 2012, California’s dominance of the nation’s venture capital activity receded a bit last year. California continues to receive about half of the country’s venture investment dollars and about 40 percent of its dealflow, but in 2013, the state’s share of dollars fell from 53 to 50 percent, according to data from the PricewaterhouseCoopers/National Venture Capital Association (PwC/NVCA) Moneytree survey. Massachusetts, which has been host to about 10 percent of national venture activity in past years, also saw its share of total U.S. activity decline. Gains in second tier venture capital states appear to account for the shift, including upticks in Florida, Maryland, New York, Texas and Virginia. Massachusetts continue to lead the country in terms of dollars and deals per capita, though for the first time that lead was threatened by the rise of Washington, D.C., as a venture capital hotspot.

Last week, SSTI reported that national venture capital activity picked up in 2013 following a slower 2012, but investment levels had generally been stable over the past three years. The current level of activity is similar to the industry status quo before the most recent economic crisis. The recuperation of the U.S. venture market had, however, a few key changes underneath the national totals. First, activity in the Internet and software sectors had surpassed the life sciences and biomedical sectors in terms of dollars and deals. Second, California, the leading state for venture capital activity since the birth of the industry, was actually increasing its share of national activity.

California continues to dominate national activity, but its rising share of venture capital dollars and deals stalled in 2013, while activity grew in several other states, according to PwC/NVCA data. This slight decline, however, does not appear to have affected Silicon Valley, the global hub of the venture capital industry.  Investment in Silicon Valley actually grew by 8 percent. Declining activity in the Los Angeles/Orange County region, San Diego and Sacramento/Northern California appear to be behind California’s falling share.

Massachusetts, which has long been the U.S. leader in terms of venture capital activity per capita and the largest venture market outside of California, saw both of those positions endangered in 2013. New York posted remarkable gains last year, with total dollars growing by more than 50 percent. The previous year had been a slow one for the state, but New York’s 2013 performance is a record-setting peak and one that could have the state surpass Massachusetts to become the second most active venture market in 2014 if the trend continues. Washington, D.C., meanwhile, also had a remarkable year in 2013, with total dollars growing by 370 percent. While D.C. remains only the sixteenth larger venture market, that level of investment makes the district the second highest ranking state in per capita venture capital. As opposed to New York, D.C.’s 2013 performance appears to be an outlier driven by a few large deals, but D.C. has been quickly emerging as a leading spot for investment over the past few years.

SSTI has prepared tables of each state’s share of national venture capital deals and dollars and per capita activity. Download the Excel version to view all of these tables as tabs, along with total dollars and deals by state for the 2008-13 period.

 

U.S. Venture Capital Per Capita and Share of National Total by State, 2013

State Share of U.S. VC Dollars Share of U.S VC Deals VC Dollars Per Capita VC Deals Per 100,000 Residents
U.S. Total 100.00% 100.00% $92.89 1.26
AK 0.00% 0.00% $0.00 0.00
AL 0.02% 0.13% $1.08 0.10
AR 0.29% 0.15% $29.25 0.20
AZ 0.39% 0.63% $17.10 0.38
CA 49.96% 40.03% $382.70 4.17
CO 1.41% 1.98% $78.74 1.50
CT 0.62% 1.33% $50.61 1.47
DC 0.98% 0.83% $443.12 5.10
DE 0.24% 0.13% $76.47 0.54
FL 1.43% 1.18% $21.53 0.24
GA 1.40% 1.03% $41.21 0.41
HI 0.01% 0.08% $1.76 0.21
IA 0.08% 0.05% $7.28 0.06
ID 0.02% 0.05% $4.03 0.12
IL 1.46% 2.25% $33.21 0.70
IN 0.09% 0.38% $3.87 0.23
KS 0.10% 0.23% $10.63 0.31
KY 0.04% 0.15% $2.45 0.14
LA 0.05% 0.18% $3.19 0.15
MA 10.42% 8.96% $457.02 5.35
MD 2.26% 1.78% $111.90 1.20
ME 0.09% 0.10% $20.20 0.30
MI 0.35% 1.70% $10.36 0.69
MN 0.92% 0.98% $49.62 0.72
MO 0.25% 0.90% $12.25 0.60
MS 0.00% 0.08% $0.40 0.10
MT 0.00% 0.03% $0.02 0.10
NC 0.88% 1.25% $26.36 0.51
ND 0.08% 0.08% $33.25 0.41
NE 0.04% 0.23% $5.91 0.48
NH 0.24% 0.40% $52.47 1.21
NJ 1.10% 1.08% $36.22 0.48
NM 0.09% 0.43% $12.43 0.82
NV 0.03% 0.13% $3.45 0.18
NY 9.73% 9.91% $145.39 2.02
OH 1.08% 2.13% $27.43 0.73
OK 0.03% 0.20% $2.08 0.21
OR 0.44% 0.93% $33.15 0.94
PA 1.52% 5.83% $34.96 1.82
PR 0.03% 0.03% $2.77 0.03
RI 0.28% 0.33% $77.66 1.24
SC 0.29% 0.38% $17.95 0.31
SD 0.04% 0.03% $14.08 0.12
TN 0.37% 1.25% $16.83 0.77
TX 4.45% 3.75% $49.42 0.57
UT 1.07% 0.85% $108.58 1.17
VA 2.02% 1.65% $71.74 0.80
VT 0.07% 0.25% $34.14 1.60
WA 3.11% 3.15% $130.99 1.81
WI 0.12% 0.48% $6.25 0.33
WV 0.00% 0.03% $0.65 0.05
WY 0.00% 0.00% $0.00 0.00
Unknown 0.00% 0.00% NA NA

Download the tables in Excel format (xlsx)…

012814.xlsx