Intro slide with table of the three top venture capital markets We’re in the middle of an exciting time right here in our home of Southern California Venture capital in the U.S. is most closely tied with technology start-ups and technology innovation And historically, venture capital has been tied with two major regions, Silicon Valley and Boston/New England Here, you can see how much of the funding is flowing into these regions. (So Cal just surpassed New York in 2009)
Here you can see the growth in Silicon Valley since 2000, and the plateau of venture dollars to Boston. But So Cal is seeing a much faster rate of growth here, in fact it is the fastest growth rate out of all regions in the U.S. Something exciting is happening here in Southern California. So, what is driving this growth? Can we expect the same pattern as Silicon Valley, or the plateau of New England? To answer this we look at some determinants of VC growth
Highlight the determinants Although overall growth is up in So Cal, is it’s nature/behavior the same as Silicon Valley, can we expect the same kind of growth here as Silicon Valley?
The overview of the data source
Why is the average deal size is larger in silicon valley
Distribution of venture deals is very different. There is a higher percentage of deals happening with earlier stage companies, and angel rounds of funding in So. Cal To make sure, let’s look at the distribution of venture dollars
Nearly 20% of Silicon Valley dollars went to a small percentage of companies. As opposed to So. Cal where you see the dollars are being spread around in early stage and expansion stage companies.
By: Bree Nguyen Faculty Mentor: Dr. Tayyeb Shabbir
Source: Thomson Reuters/PricewaterhouseCoopers Region 2010 Silicon Valley $8,513,442,800 39.0% Boston/New England $2,537,238,000 11.6% Southern California $2,431,050,700 11.1% Total $21,823,380,100
Source: Thomson Reuters/PricewaterhouseCoopers 2000 2010 % Change Silicon Valley 32.2% 39.0% 21.1% Boston/ New England 11.4% 11.6% 2.13% Southern California 8.6% 11.1% 29.9%