Science and Technology in the Economy

Venture Capital Deals as Share of High-Technology Business Establishments: 2004

  • 1st quartile
    (2.11–0.37%)
  • 2nd quartile
    (0.36%–0.16%)
  • 3rd quartile
    (0.15%–0.09%)
  • 4th quartile
    (0.08%–0.00%)

Quartiles

Venture capital deals as share of high-technology business establishments: 2004
 
1st quartile
(2.11%–0.37%)
2nd quartile
(0.36%–0.16%)
3rd quartile
(0.15%–0.09%)
4th quartile
($0.08%–0.00%)
 
CaliforniaDistrict of ColumbiaArizonaAlabama
ColoradoHawaiiFloridaAlaska
ConnecticutIllinoisIndianaArkansas
GeorgiaMinnesotaIowaDelaware
MarylandNew JerseyKansasIdaho
MassachusettsNew MexicoKentuckyLouisiana
New HampshireOhioMaineMontana
New YorkOklahomaMichiganNebraska
North CarolinaOregonMississippiSouth Carolina
PennsylvaniaRhode IslandMissouri 
UtahSouth DakotaNevada 
VirginiaTennesseeNorth Dakota 
WashingtonTexasWest Virginia 
 VermontWisconsin 
  Wyoming 
 
SOURCES: PricewaterhouseCoopers, Venture Economics, and National Venture Capital Association, MoneyTree Survey, special tabulations; and Census Bureau, 1989–2004 Business Information Tracking Series, special tabulations. See Data Table.

Findings

  • The number of venture capital deals that involved U.S. companies fell from a high of 7,900 deals in 2000 to a fairly consistent value of 2,900–3,100 deals annually during the period of 2002–04.
  • In 2004, the distribution of venture capital among high-technology companies was uneven between states. Companies in only five states exceeded the national average of 0.50%.
  • Companies in high-technology industries located in Massachusetts were the most successful in accessing venture capital investments in 2004 with a 2.1% rate. This was less than half the rate of Massachusetts companies that received such funding in 2000. California companies in high-technology industries obtained venture capitol investment at a rate of 1.6%. No other states exceeded a rate of 1%.
  • In 2004, no venture capital deals were reported in Alaska, Montana, or Nebraska.

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.

Data Table

Table 8-46
Venture capital deals as share of high-technology business establishments, by state: 2003 and 2004
 
  Venture capital deals   High-technology
establishments
  Venture capital deals/
high-technology
establishment (%)
State 2003 2004    2003 2004    2003 2004
 
United States 2,903 3,036   590,417 603,642   0.49 0.50
Alabama 9 5   6,347 6,407   0.14 0.08
Alaska 0 0   1,345 1,358   0.00 0.00
Arizona 16 12   10,433 10,901   0.15 0.11
Arkansas 3 1   4,012 4,142   0.07 0.02
California 1,122 1,225   77,614 79,288   1.45 1.55
Colorado 72 75   15,532 16,027   0.46 0.47
Connecticut 34 32   7,827 7,794   0.43 0.41
Delaware 1 1   3,964 3,907   0.03 0.03
District of Columbia 6 8   2,589 2,695   0.23 0.30
Florida 61 57   38,118 40,165   0.16 0.14
Georgia 55 73   18,820 19,424   0.29 0.38
Hawaii 6 4   2,097 2,152   0.29 0.19
Idaho 5 2   2,515 2,582   0.20 0.08
Illinois 58 51   27,606 28,200   0.21 0.18
Indiana 8 9   9,626 9,858   0.08 0.09
Iowa 1 4   4,316 4,324   0.02 0.09
Kansas 2 9   5,716 5,900   0.03 0.15
Kentucky 3 5   5,453 5,585   0.06 0.09
Louisiana 1 3   7,218 7,192   0.01 0.04
Maine 2 3   2,466 2,541   0.08 0.12
Maryland 84 85   13,428 13,974   0.63 0.61
Massachusetts 378 365   17,183 17,305   2.20 2.11
Michigan 17 19   16,937 16,988   0.10 0.11
Minnesota 58 47   12,834 13,055   0.45 0.36
Mississippi 4 5   3,269 3,274   0.12 0.15
Missouri 23 10   9,562 9,745   0.24 0.10
Montana 1 0   2,108 2,229   0.05 0.00
Nebraska 2 0   2,797 2,864   0.07 0.00
Nevada 6 5   5,387 5,493   0.11 0.09
New Hampshire 32 23   3,511 3,559   0.91 0.65
New Jersey 88 88   24,286 24,256   0.36 0.36
New Mexico 5 8   3,322 3,385   0.15 0.24
New York 119 149   35,926 36,706   0.33 0.41
North Carolina 76 57   14,869 15,426   0.51 0.37
North Dakota 2 1   964 972   0.21 0.10
Ohio 25 32   19,875 20,120   0.13 0.16
Oklahoma 2 11   6,859 6,965   0.03 0.16
Oregon 21 27   7,500 7,659   0.28 0.35
Pennsylvania 90 92   22,266 22,796   0.40 0.40
Rhode Island 10 7   1,976 2,043   0.51 0.34
South Carolina 4 5   5,869 6,048   0.07 0.08
South Dakota 1 3   1,206 1,234   0.08 0.24
Tennessee 22 23   8,196 8,226   0.27 0.28
Texas 165 162   45,062 45,522   0.37 0.36
Utah 22 27   5,474 5,716   0.40 0.47
Vermont 6 4   1,453 1,498   0.41 0.27
Virginia 80 73   18,868 19,758   0.42 0.37
Washington 81 114   13,171 13,480   0.61 0.85
West Virginia 5 3   2,257 2,259   0.22 0.13
Wisconsin 8 10   9,035 9,249   0.09 0.11
Wyoming 1 2   1,353 1,396   0.07 0.14
                 
Puerto Rico 1 1   NA NA   NA NA
 

NA = not available

SOURCES: PricewaterhouseCoopers, Venture Economics, and National Venture Capital Association, MoneyTree Survey, special tabulations; and Census Bureau, 1989–2004 Business Information Tracking Series, special tabulations.

Science and Engineering Indicators 2008

Excel.Source Data
  • 1st quartile
    (2.11–0.37%)
  • 2nd quartile
    (0.36%–0.16%)
  • 3rd quartile
    (0.15%–0.09%)
  • 4th quartile
    (0.08%–0.00%)

Quartiles

Venture capital deals as share of high-technology business establishments: 2004
 
1st quartile
(2.11%–0.37%)
2nd quartile
(0.36%–0.16%)
3rd quartile
(0.15%–0.09%)
4th quartile
($0.08%–0.00%)
 
CaliforniaDistrict of ColumbiaArizonaAlabama
ColoradoHawaiiFloridaAlaska
ConnecticutIllinoisIndianaArkansas
GeorgiaMinnesotaIowaDelaware
MarylandNew JerseyKansasIdaho
MassachusettsNew MexicoKentuckyLouisiana
New HampshireOhioMaineMontana
New YorkOklahomaMichiganNebraska
North CarolinaOregonMississippiSouth Carolina
PennsylvaniaRhode IslandMissouri 
UtahSouth DakotaNevada 
VirginiaTennesseeNorth Dakota 
WashingtonTexasWest Virginia 
 VermontWisconsin 
  Wyoming 
 
SOURCES: PricewaterhouseCoopers, Venture Economics, and National Venture Capital Association, MoneyTree Survey, special tabulations; and Census Bureau, 1989–2004 Business Information Tracking Series, special tabulations. See Data Table.

Findings

  • The number of venture capital deals that involved U.S. companies fell from a high of 7,900 deals in 2000 to a fairly consistent value of 2,900–3,100 deals annually during the period of 2002–04.
  • In 2004, the distribution of venture capital among high-technology companies was uneven between states. Companies in only five states exceeded the national average of 0.50%.
  • Companies in high-technology industries located in Massachusetts were the most successful in accessing venture capital investments in 2004 with a 2.1% rate. This was less than half the rate of Massachusetts companies that received such funding in 2000. California companies in high-technology industries obtained venture capitol investment at a rate of 1.6%. No other states exceeded a rate of 1%.
  • In 2004, no venture capital deals were reported in Alaska, Montana, or Nebraska.

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.

Data Table

Table 8-46
Venture capital deals as share of high-technology business establishments, by state: 2003 and 2004
 
  Venture capital deals   High-technology
establishments
  Venture capital deals/
high-technology
establishment (%)
State 2003 2004    2003 2004    2003 2004
 
United States 2,903 3,036   590,417 603,642   0.49 0.50
Alabama 9 5   6,347 6,407   0.14 0.08
Alaska 0 0   1,345 1,358   0.00 0.00
Arizona 16 12   10,433 10,901   0.15 0.11
Arkansas 3 1   4,012 4,142   0.07 0.02
California 1,122 1,225   77,614 79,288   1.45 1.55
Colorado 72 75   15,532 16,027   0.46 0.47
Connecticut 34 32   7,827 7,794   0.43 0.41
Delaware 1 1   3,964 3,907   0.03 0.03
District of Columbia 6 8   2,589 2,695   0.23 0.30
Florida 61 57   38,118 40,165   0.16 0.14
Georgia 55 73   18,820 19,424   0.29 0.38
Hawaii 6 4   2,097 2,152   0.29 0.19
Idaho 5 2   2,515 2,582   0.20 0.08
Illinois 58 51   27,606 28,200   0.21 0.18
Indiana 8 9   9,626 9,858   0.08 0.09
Iowa 1 4   4,316 4,324   0.02 0.09
Kansas 2 9   5,716 5,900   0.03 0.15
Kentucky 3 5   5,453 5,585   0.06 0.09
Louisiana 1 3   7,218 7,192   0.01 0.04
Maine 2 3   2,466 2,541   0.08 0.12
Maryland 84 85   13,428 13,974   0.63 0.61
Massachusetts 378 365   17,183 17,305   2.20 2.11
Michigan 17 19   16,937 16,988   0.10 0.11
Minnesota 58 47   12,834 13,055   0.45 0.36
Mississippi 4 5   3,269 3,274   0.12 0.15
Missouri 23 10   9,562 9,745   0.24 0.10
Montana 1 0   2,108 2,229   0.05 0.00
Nebraska 2 0   2,797 2,864   0.07 0.00
Nevada 6 5   5,387 5,493   0.11 0.09
New Hampshire 32 23   3,511 3,559   0.91 0.65
New Jersey 88 88   24,286 24,256   0.36 0.36
New Mexico 5 8   3,322 3,385   0.15 0.24
New York 119 149   35,926 36,706   0.33 0.41
North Carolina 76 57   14,869 15,426   0.51 0.37
North Dakota 2 1   964 972   0.21 0.10
Ohio 25 32   19,875 20,120   0.13 0.16
Oklahoma 2 11   6,859 6,965   0.03 0.16
Oregon 21 27   7,500 7,659   0.28 0.35
Pennsylvania 90 92   22,266 22,796   0.40 0.40
Rhode Island 10 7   1,976 2,043   0.51 0.34
South Carolina 4 5   5,869 6,048   0.07 0.08
South Dakota 1 3   1,206 1,234   0.08 0.24
Tennessee 22 23   8,196 8,226   0.27 0.28
Texas 165 162   45,062 45,522   0.37 0.36
Utah 22 27   5,474 5,716   0.40 0.47
Vermont 6 4   1,453 1,498   0.41 0.27
Virginia 80 73   18,868 19,758   0.42 0.37
Washington 81 114   13,171 13,480   0.61 0.85
West Virginia 5 3   2,257 2,259   0.22 0.13
Wisconsin 8 10   9,035 9,249   0.09 0.11
Wyoming 1 2   1,353 1,396   0.07 0.14
                 
Puerto Rico 1 1   NA NA   NA NA
 

NA = not available

SOURCES: PricewaterhouseCoopers, Venture Economics, and National Venture Capital Association, MoneyTree Survey, special tabulations; and Census Bureau, 1989–2004 Business Information Tracking Series, special tabulations.

Science and Engineering Indicators 2008

Excel.Source Data
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