California gets slammed for any number of reasons—budget deficits, earthquakes—but it’s a big winner when it comes to venture capital (VC) spending. It drew more VC investment than any other state last year, by a landslide. More than half the $28 billion spent nation-wide last year went to California.
PricewaterhouseCoopers and the National Venture Capital Association, which released the report, say that California drew almost five times the VC investment as Massachusetts, which ranked second.
Venture capital spending is growing – up 22 percent last year from 2010. And California’s piece is growing even more—companies in the Golden State drew $14.5 billion, 24 percent more than the previous year.
No surprise, Silicon Valley led the charge, with software companies drawing $6.7 billion in investment. The second-largest draw: biotech companies, bringing in $4.7 billion.
Some argue that New York City is the latest hot locale for entrepreneurs, pointing to companies like Foursquare and BuzzFeed in ‘Silicon Alley,’ but New York ranked third in the report, drawing just $2.3 billion in venture investment last year.
New York’s Economic Development Council responded to these numbers by pointing out that New York grew about 40 percent from 2010 to 2011, while Silicon Valley grew 27 percent and Boston grew 23 percent.
NYEDC points out that CB Insight Data reports that in terms of the number of deals, New York City takes second place, behind only San Francisco.
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