Print this chapter (6.2MB)
Science and Technology in the Economy
Quartiles | Findings | Description
Venture capital deals as share of high-technology business establishments: 2002
Venture capital deals as share of high-technology business establishments: 2002
Quartiles
Venture capital deals as share of high-technology business establishments: 2002*
| 1st Quartile (2.43%–0.57%) |
2nd Quartile (0.55%–0.30%) |
3rd Quartile (0.27%–0.14%) |
4th Quartile (0.13%–0.00%) |
|---|---|---|---|
| California | Arizona | Alabama | Alaska |
| Colorado | Illinois | Arkansas | Hawaii |
| Connecticut | Minnesota | Delaware | Idaho |
| Georgia | Missouri | District of Columbia | Iowa |
| Maryland | New Jersey | Florida | Kansas |
| Massachusetts | New Mexico | Indiana | Kentucky |
| New Hampshire | New York | Louisiana | Montana |
| North Carolina | Ohio | Maine | Nevada |
| Rhode Island | Oregon | Michigan | North Dakota |
| Utah | Pennsylvania | Mississippi | Oklahoma |
| Virginia | South Dakota | Nebraska | South Carolina |
| Washington | Tennessee | Wisconsin | Wyoming |
| West Virginia | Texas | ||
| Vermont | |||
| *States in alphabetical order, not data order.
SOURCES: PricewaterhouseCoopers, Venture Economics, and National Venture Capital Association, MoneyTree SurveyTM, special tabulations; and U.S. Census Bureau, 1989-2002 Business Information Tracking Series, special tabulations. See |
|||
Findings
- The number of venture capital deals that involved U.S. companies fell from 8,000 to 3,000 between 2000 and 2002, a decline of more than 50%.
- In 2002, the distribution of venture capital among high-technology companies was uneven. Companies in only 10 states exceeded the national average of 0.67%.
- The high-technology companies located in Massachusetts were the most successful in accessing venture capital investments in 2002 with a 2.4% success rate. This was less than half the rate of Massachusetts companies that received such funding in 2000.
- In 2002, no venture capital deals were reported in four states.
Description
This indicator provides a measure of the extent to which high-technology companies in a state receive venture capital investments. The value of the indicator is calculated by dividing the number of venture capital deals by the number of companies operating in high-technology industries in that state. In most cases, a company will not receive more than one infusion of venture capital in a given year.
Venture capital investment can bring needed capital and management expertise that can help to grow a high-technology company. High values indicate that high-technology companies in a state are frequently using venture capital to facilitate their growth and development.
