What I Learned About the Massachusetts Venture Capital Scene Today…

This morning I read through some materials prepared by the National Venture Capital Association (which I am on the board of) which I thought were interesting:

• Massachusetts ranked second among all states with $3.0 billion invested in 2008; California was a clear number one at $14.1 billion while New York was comfortably third with $1.3 billion invested…no other New England state was in the top 12.

• Since 1970 VC’s have invested $50.4 billion in 2,764 companies in Massachusetts.

• One job was created for every $77,390 VC dollars invested.

• There are 651,239 jobs at Massachusetts companies which were once venture-backed; these companies generated $146 billion of revenues in 2008 – that is a lot.

• Since 2002 approximately 350 companies in this state raised venture capital each year.

• The top three industries in 2008 which attracted venture capital are: biotech (36% of total dollars invested); energy (17%);and, software (11%).

• 75% of all venture capital invested in Massachusetts companies came from out of state last year, but…

• Nearly 20% of all venture capital in this country is managed by firms based in Massachusetts.

 What do you think about these numbers? Do you think the local VC industry is healthy?


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2 responses to “What I Learned About the Massachusetts Venture Capital Scene Today…

  1. Interesting numbers, which could indicate good past health. I wonder more about the future health locally as competition grows (i.e., other state’s regulatory and cost of living environments) as well as global competition as science spreads and resources follow.

  2. Pingback: Massachusetts capital | Infomcgconsulting

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