Chapter 8: State Indicators

Science and Technology in the Economy

Select Indicator:

Quartiles | Findings | Description

Venture capital disbursed per $1,000 of gross state product: 2003

Venture capital disbursed per $1,000 of gross state product: 2003

Venture Capital Disbursed per $1,000 of Gross State Product: 2003.


Venture capital disbursed per $1,000 of gross state product: 2003*

1st Quartile
2nd Quartile
3rd Quartile
4th Quartile
California District of Columbia Alabama Alaska
Colorado Florida Arizona Arkansas
Connecticut Georgia Hawaii Delaware
Idaho Illinois Indiana Iowa
Maryland Minnesota Michigan Kansas
Massachusetts Missouri New Mexico Kentucky
New Hampshire Nevada Ohio Louisiana
New Jersey New York Oklahoma Maine
Pennsylvania North Carolina South Carolina Mississippi
Rhode Island North Dakota South Dakota Montana
Texas Oregon Tennessee Nebraska
Utah Virginia Vermont Wyoming
Washington West Virginia Wisconsin
*States in alphabetical order, not data order.

SOURCES: PricewaterhouseCoopers, Venture Economics, and National Venture Capital Association, MoneyTree SurveyTM special tabulations; and U.S. Department of Commerce, Bureau of Economic Analysis, Gross State Product data. See table 8-40.

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  • The amount of venture capital invested in the United States increased more than 10-fold, from nearly $8 billion in 1995 to a record $106 billion in 2000, before falling to $19 billion in 2003 (in current dollars).

  • In 2003, the state average for venture capital disbursed per $1,000 GSP was $1.73, which was larger than the $1.13 invested in 1995 but only about one-sixth the fraction of GSP invested in 2000.

  • Companies in California received 43% of the total venture capital disbursed in the United States in 2003, followed by companies in Massachusetts with 14%.

  • The state distribution of venture capital was similar to that for the high-technology indicators.

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Venture capital represents an important source of funding for start-up companies. This indicator shows the relative magnitude of venture capital investments in a state after adjusting for the size of the state’s economy. The indicator is expressed as dollars of venture capital disbursed per $1,000 of gross state product (GSP).

Venture capital investments represent a method of funding the growth and expansion of companies early in their development before establishing a predictable sales history that would qualify them for other types of financing. Access to this type of financing varies greatly in different states.

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