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?