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Science and Technology in the Economy
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
Quartiles
Venture capital disbursed per $1,000 of gross state product: 2003*
| 1st Quartile ($8.70–$1.25) |
2nd Quartile ($1.24–$0.42) |
3rd Quartile ($0.38–$0.11) |
4th Quartile ($0.06–$0.00) |
|---|---|---|---|
| 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 |
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Findings
- 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.
Description
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.
