VC May be Down, But Past Impact Huge

Venture capital invested during the past three decades created 7.6 million U.S. jobs and more than $1.3 trillion in revenue as of the end of 2000, according to an economic impact study released Monday by the National Venture Capital Association (NVCA). 



The research shows that $273.3 billion of venture capital created companies were responsible for 5.9 percent of the nation's jobs and 13.1 percent of the U.S. Gross Domestic Product in 2000. Venture investment most frequently led to job and revenue creation in the computer, consumer, and medical health sectors, followed by the communications, industrial energy, electronics and biotech. 



The new figures are substantially higher than preliminary numbers released this past Spring (see the May 4, 2001 issue of the Digest ) as they include not only independent venture-backed enterprises but also those venture-backed companies that have been acquired. 



The NVCA also released data that details venture-backed job and revenue creation by state. Topping both lists are California, Texas, Pennsylvania, Massachusetts, New York, and Washington. 



The study shows there was an unprecedented geographical diversification of venture capital during the past five years. While states such as California, Massachusetts and New York have consistently been national hotbeds

for venture investing, other states showed considerable growth and promise, including Maryland, Minnesota, Georgia, Oregon and Colorado. 



More information, including the state-by-state statistics, is available at: http://www.nvca.org/