The Current State of Venture Capital

THE CURRENT STATE OF VENTURE CAPITAL Each year, college students drop out of universities, men and women leave their jobs, and people of all ages begin setting up shop in their basement or garage with one purpose in mind: to pioneer the company of their dreams. Getting a new business started sometimes means investing large sums of money, and when entrepreneurs dont have the cash to make their visions a reality, many turn to Venture Capitalists. Here is a look at where these deals are being approved, and which industries are commanding the highest investments. Other Sectors: 15% Computer Hardware: 3%H Software (non-Internet/non-mobile): 5% Internet: 39% As an industry sector, Internet leads the way in new VC deals: Energy and Utilities: 7% Healthcare: 20% Mobile and Telecommunications: 11% VC HISTORY $105 Complete year I Incomplete year • $54.1 $40 $40.7 $35 $30.7 $30 $28.8 •$26.6 $25 $23.7 $23.1 • $22 $22.4 $21.1 $20.8 $20 $19.8 $15 $14.9 $11.3 $10 Venture capital funding closed in Q1 2011 • $8 at a two year high: $7.5 billion invested over $7.5 738 deals. $5 Year WHERE THE DEALS ARE While entrepreneurs are born the whole world over, the majority of VC deals are closed in just three states. They are: CALIFORNIA Known for the famous Silicon Valley, California is America's epicenter of venture capital. More than 40% of all Internet VC deals 49% 52% come from California's investors. The state is also responsible for 73% of the money invested in green energy solutions. Share of Total VC Deals Year-Over-Year: Q1 2010 Q1 2011 San Francisco $522 million (72 deals) Santa Clara $379 million (7 deals) Palo Alto $322 million (23 deals) Mountain View $222 million (20 deals) Redwood City $215 million (14 deals) Oakland $211 million (3 deals) Irvine $196 million (3 deals) San Jose $193 million (11 deals) Sunnydale San Leandro $170 million (10 deals) $135 million (1 deal) MASSACHUSETTS With two leading colleges on its soil - MIT and Harvard Massachusetts is home to some of the brightest business and technology thinkers in the country. 15% 10% 19% of all healthcare deals are funded by Massachusetts, Share of Total VC Deals Year-Over-Year: making it the second largest state in healthcare behind California. Q1 2010 Q1 2011 Cambridge: $163 million (19 deals) Waltham: $114 million (12 deals) Marlborough: $61 million (3 deal) Lexington: $53 million (3 deals Boston: $46 million (6 deals) Littleton: $39 million (3 deals) North Lexington: $28 million (1 deal) Newton: $25 million (3 deals) Chelsea: $20 million (1 deal) Burlington: $18 million (4 deaks) NEW YORK Known for its financial district, New York City is a major player in America's funding landscape. 60% of New York deals are for Internet companies, followed by Share of Total VC Deals Year-Over-Year: 8% in healthcare and 7% in mobile and telecommunications. Q1 2010 Q1 2011 New York: $383 million (61 deals) Brooklyn: $20 million (1 deal) Irvington: $15 million (1 deal) Oneonta: $12 million (1 deal) Bronx: I $7 million (2 deals) FOCUS LLOZ OL07 600Z 2008 2007 9007 2005 2004 E007 0007 6661 8661 Z661 9661 1995 Total VC Investment Amount (in billions)