Charlottesville #1 in Venture Capital Investment Growth
Friday, January 29, 2016
A MoneyTree™ Report by PricewaterhouseCoopers and Venture Capital Association shows that venture investors deployed capital to 3,662 companies located in 33 Metropolitan Statistical Areas (MSA) in 2015. Surprisingly, not all of these investments were in the largest metropolitan areas.
“Contrary to popular belief you don’t have to be an entrepreneur living in San Francisco, New York or Boston to receive venture capital funding. There are pockets of innovation all across the United States, and as long as you have a groundbreaking idea with high-growth potential you are well positioned to attract venture capital funding to help grow your business,” said Bobby Franklin, President & CEO of NVCA. “As more cities, states and municipalities dedicate greater resources to foster the growth of their local ecosystems, venture investors are taking notice and deploying capital across much larger areas of the country. This not only helps the entrepreneurs themselves but local economies as well through job creation and sustained economic growth.”
Not surprisingly, the San Francisco-Oakland-Fremont, CA MSA continues to be the top MSA for venture capital investment, with 797 companies attracting $21.0 billion in 2015. For the third year in a row, the New York-Northern New Jersey-Long Island, NY-NJ-PA MSA had the second largest number of companies receive venture backing with 416 startups attracting $7.0 billion. Solidifying itself as a prime location for innovation and venture capital investment, the Boston-Cambridge-Quincy, MA-NH MSA broke into the top three with 348 companies receiving $5.6 billion. Displaced by Boston out of the top three, the San Jose-Sunnyvale-Santa Clara, CA MSA had the fourth largest number of companies receive venture capital investment with 321 startups receiving $6.2 billion. For the 16th year in a row, the Los Angeles-Long Beach-Santa, Ana, CA rounded out the top five destinations for venture capital investment with 240 companies receiving $4.5 billion in 2015.
Measuring the compound annual growth rate number of companies receiving venture capital funding since 2010, the Charlottesville, VA MSA has experienced the greatest growth of its ecosystem at 55.2 percent. Nine companies in the Charlottesville, VA MSA received $27.7 million in venture funding in 2015 compared to one company receiving $250,000 in 2010. Interestingly, the Charlottesville, VA MSA has also experienced the greatest rate of growth as measured by venture investment dollars with a 156.5 percent increase since 2010. The Oklahoma City, OK MSA logged the second greatest rate of growth by number of companies receiving investment since 2010 with a 51.6 percent increase and eight companies receiving venture funding in 2015. The MSA to record the third largest growth rate since 2010 is the Rochester, NY MSA which experienced a 43.1 percent increase with six companies receiving venture investment in 2015. Rounding out the top five MSAs to experience the greatest rate of growth since 2010, the Chattanooga TN-GA MSA came in fourth with a 38 percent increase and Memphis, TN-AR-MS in fifth with a 34.5 percent increase.
Click here to view the full U.S Venture Capital Investment Spanned 133 MSAs in 2015