Science and Technology in the Economy

Venture Capital Disbursed per Venture Capital Deal: 2006

  • 1st quartile
    ($16.22–$7.29)
  • 2nd quartile
    ($6.87–$4.62)
  • 3rd quartile
    ($4.34–$2.17)
  • 4th quartile
    ($1.91–$0.00)

Quartiles

Venture capital disbursed per venture capital deal: 2006
 
1st quartile
($16.22–$7.29)
2nd quartile
($6.87–$4.62)
3rd quartile
($4.34–$2.17)
4th quartile
($1.91–$0.00)
 
ArizonaArkansasAlabamaAlaska
CaliforniaColoradoKentuckyDelaware
ConnecticutFloridaLouisianaHawaii
District of ColumbiaGeorgiaMississippiIdaho
IllinoisIndianaMissouriIowa
MassachusettsKansasNebraskaMaine
MinnesotaMarylandNevadaMontana
New JerseyMichiganNew HampshireNorth Dakota
North CarolinaNew YorkNew MexicoOhio
PennsylvaniaOregonOklahomaSouth Dakota
Rhode IslandUtahSouth CarolinaVermont
TexasVirginiaTennesseeWest Virginia
WashingtonWyomingWisconsin 
 
SOURCE: PricewaterhouseCoopers, Venture Economics, and National Venture Capital Association, MoneyTree Survey, special tabulations. See Data Table.

Findings

  • The size of the average venture capital investment in the United States rose over the past decade to more than $7 million per deal in 2006. This average represented an increase in investment size from $4 million per deal in 1996 and $5 million per deal in 1998 but a decline from $13 million per deal in 2000.
  • The total number of venture capital deals began to rise again during the past few years, increasing from 2,872 in 2004 to 3,519 in 2006.
  • The state distribution on this indicator was skewed in 2006; only 11 states and the District of Columbia were above the national average, and 7 states reported no venture capital investments.
  • The value of this indicator has shown a high level of variability during the past decade both at the national level and for individual states.

Description

This indicator provides a measure of the average size of the venture capital investments being made in a state. The indicator is expressed as the total dollars of venture capital invested in millions divided by the number of companies receiving venture capital. The availability of venture capital may vary widely based on local business climate and entrepreneurial activity. The amount also will vary by stage of investment and type of company.

This indicator provides some measure of the magnitude of investment that developing companies in a specific state have attracted from venture capital sources. High values indicate a large average deal size.

Some states have relatively few venture capital deals taking place in a given year; thus, the value of this indicator may show large fluctuations on a year-to-year basis. This variation is further compounded by the large change in total venture capital investments that has occurred since 2000, making the use of a 3-year average of state investments misleading. Twenty-three states reported fewer than 10 venture capital deals in 2006. In such states, a single large or small venture capital investment can significantly affect the value of this indicator.

Data Table

Table 8-47
Venture capital disbursed per venture capital deal, by state: 1996, 2001, and 2006
 
  Venture capital disbursed ($thousands)   Venture capital deals   Venture capital/deal ($millions)
State 1996 2001 2006    1996 2001 2006    1996 2001 2006
 
United States 11,270,037 40,664,265 26,075,607   2,566 4,473 3,519   4.39 9.09 7.41
Alabama 50,170 80,347 18,895   8 16 7   6.27 5.02 2.70
Alaska 0 0 0   0 0 0   0.00 0.00 0.00
Arizona 95,347 196,804 270,796   28 32 31   3.41 6.15 8.74
Arkansas 0 10,400 39,181   0 3 6   0.00 3.47 6.53
California 4,558,144 16,694,055 12,577,804   1,018 1,528 1,495   4.48 10.93 8.41
Colorado 318,354 1,263,862 643,352   79 113 96   4.03 11.18 6.70
Connecticut 142,694 535,779 247,117   44 69 30   3.24 7.76 8.24
Delaware 4,742 164,630 0   4 2 1   1.19 82.32 0.00
District of Columbia 7,113 162,181 114,927   4 24 14   1.78 6.76 8.21
Florida 412,331 895,125 317,110   56 113 56   7.36 7.92 5.66
Georgia 274,324 931,562 357,314   54 139 75   5.08 6.70 4.76
Hawaii 20,150 37,811 17,132   2 5 11   10.08 7.56 1.56
Idaho 133 2,700 0   1 2 0   0.13 1.35 0.00
Illinois 362,761 958,237 407,650   54 126 54   6.72 7.61 7.55
Indiana 22,766 53,755 68,932   8 6 13   2.85 8.96 5.30
Iowa 22,100 6,041 0   6 4 1   3.68 1.51 0.00
Kansas 25,162 39,923 11,000   8 9 2   3.15 4.44 5.50
Kentucky 31,097 23,855 34,710   7 4 8   4.44 5.96 4.34
Louisiana 13,660 80,450 11,450   4 11 3   3.42 7.31 3.82
Maine 1,467 3,878 7,649   5 5 4   0.29 0.78 1.91
Maryland 137,409 1,001,492 657,280   45 92 109   3.05 10.89 6.03
Massachusetts 1,075,645 4,779,022 2,874,103   287 512 380   3.75 9.33 7.56
Michigan 85,666 156,285 103,009   21 24 15   4.08 6.51 6.87
Minnesota 172,950 478,587 323,978   53 85 38   3.26 5.63 8.53
Mississippi 10,580 30,000 9,140   3 3 3   3.53 10.00 3.05
Missouri 47,881 248,870 62,058   21 18 16   2.28 13.83 3.88
Montana 0 24,820 0   0 2 0   0.00 12.41 0.00
Nebraska 10,436 58,963 6,500   5 7 3   2.09 8.42 2.17
Nevada 1,985 28,250 18,400   2 4 6   0.99 7.06 3.07
New Hampshire 42,628 224,616 75,857   16 30 22   2.66 7.49 3.45
New Jersey 402,077 1,510,888 780,017   63 151 88   6.38 10.01 8.86
New Mexico 22,412 14,215 30,118   5 4 8   4.48 3.55 3.76
New York 406,025 2,104,368 1,285,864   91 289 196   4.46 7.28 6.56
North Carolina 184,939 589,751 510,345   61 91 70   3.03 6.48 7.29
North Dakota 0 1,017 0   0 1 0   0.00 1.02 0.00
Ohio 162,972 233,615 43,508   53 43 31   3.07 5.43 1.40
Oklahoma 31,803 29,800 13,834   7 7 5   4.54 4.26 2.77
Oregon 94,973 233,391 143,287   30 44 31   3.17 5.30 4.62
Pennsylvania 305,140 960,191 763,712   82 135 101   3.72 7.11 7.56
Rhode Island 300 118,709 113,505   1 11 7   0.30 10.79 16.22
South Carolina 91,850 97,141 9,994   13 5 4   7.07 19.43 2.50
South Dakota 0 500 0   0 1 1   0.00 0.50 0.00
Tennessee 146,787 212,801 47,000   24 29 11   6.12 7.34 4.27
Texas 532,761 2,945,371 1,387,544   131 329 179   4.07 8.95 7.75
Utah 52,270 210,147 168,564   15 43 35   3.48 4.89 4.82
Vermont 2,000 11,600 10,143   1 3 9   2.00 3.87 1.13
Virginia 453,255 978,848 391,793   62 137 84   7.31 7.14 4.66
Washington 412,415 1,145,091 1,030,511   76 139 138   5.43 8.24 7.47
West Virginia 0 1,400 3,724   0 2 2   0.00 0.70 1.86
Wisconsin 20,361 93,121 60,300   8 21 19   2.55 4.43 3.17
Wyoming 0 0 6,500   0 0 1   0.00 0.00 6.50
 
Puerto Rico 4,080 32,000 14,291   5 5 3   0.82 6.40 4.76
 

SOURCE: PricewaterhouseCoopers, Venture Economics, and National Venture Capital Association, MoneyTree Survey, special tabulations.

Science and Engineering Indicators 2008

Excel.Source Data
  • 1st quartile
    ($16.22–$7.29)
  • 2nd quartile
    ($6.87–$4.62)
  • 3rd quartile
    ($4.34–$2.17)
  • 4th quartile
    ($1.91–$0.00)

Quartiles

Venture capital disbursed per venture capital deal: 2006
 
1st quartile
($16.22–$7.29)
2nd quartile
($6.87–$4.62)
3rd quartile
($4.34–$2.17)
4th quartile
($1.91–$0.00)
 
ArizonaArkansasAlabamaAlaska
CaliforniaColoradoKentuckyDelaware
ConnecticutFloridaLouisianaHawaii
District of ColumbiaGeorgiaMississippiIdaho
IllinoisIndianaMissouriIowa
MassachusettsKansasNebraskaMaine
MinnesotaMarylandNevadaMontana
New JerseyMichiganNew HampshireNorth Dakota
North CarolinaNew YorkNew MexicoOhio
PennsylvaniaOregonOklahomaSouth Dakota
Rhode IslandUtahSouth CarolinaVermont
TexasVirginiaTennesseeWest Virginia
WashingtonWyomingWisconsin 
 
SOURCE: PricewaterhouseCoopers, Venture Economics, and National Venture Capital Association, MoneyTree Survey, special tabulations. See Data Table.

Findings

  • The size of the average venture capital investment in the United States rose over the past decade to more than $7 million per deal in 2006. This average represented an increase in investment size from $4 million per deal in 1996 and $5 million per deal in 1998 but a decline from $13 million per deal in 2000.
  • The total number of venture capital deals began to rise again during the past few years, increasing from 2,872 in 2004 to 3,519 in 2006.
  • The state distribution on this indicator was skewed in 2006; only 11 states and the District of Columbia were above the national average, and 7 states reported no venture capital investments.
  • The value of this indicator has shown a high level of variability during the past decade both at the national level and for individual states.

Description

This indicator provides a measure of the average size of the venture capital investments being made in a state. The indicator is expressed as the total dollars of venture capital invested in millions divided by the number of companies receiving venture capital. The availability of venture capital may vary widely based on local business climate and entrepreneurial activity. The amount also will vary by stage of investment and type of company.

This indicator provides some measure of the magnitude of investment that developing companies in a specific state have attracted from venture capital sources. High values indicate a large average deal size.

Some states have relatively few venture capital deals taking place in a given year; thus, the value of this indicator may show large fluctuations on a year-to-year basis. This variation is further compounded by the large change in total venture capital investments that has occurred since 2000, making the use of a 3-year average of state investments misleading. Twenty-three states reported fewer than 10 venture capital deals in 2006. In such states, a single large or small venture capital investment can significantly affect the value of this indicator.

Data Table

Table 8-47
Venture capital disbursed per venture capital deal, by state: 1996, 2001, and 2006
 
  Venture capital disbursed ($thousands)   Venture capital deals   Venture capital/deal ($millions)
State 1996 2001 2006    1996 2001 2006    1996 2001 2006
 
United States 11,270,037 40,664,265 26,075,607   2,566 4,473 3,519   4.39 9.09 7.41
Alabama 50,170 80,347 18,895   8 16 7   6.27 5.02 2.70
Alaska 0 0 0   0 0 0   0.00 0.00 0.00
Arizona 95,347 196,804 270,796   28 32 31   3.41 6.15 8.74
Arkansas 0 10,400 39,181   0 3 6   0.00 3.47 6.53
California 4,558,144 16,694,055 12,577,804   1,018 1,528 1,495   4.48 10.93 8.41
Colorado 318,354 1,263,862 643,352   79 113 96   4.03 11.18 6.70
Connecticut 142,694 535,779 247,117   44 69 30   3.24 7.76 8.24
Delaware 4,742 164,630 0   4 2 1   1.19 82.32 0.00
District of Columbia 7,113 162,181 114,927   4 24 14   1.78 6.76 8.21
Florida 412,331 895,125 317,110   56 113 56   7.36 7.92 5.66
Georgia 274,324 931,562 357,314   54 139 75   5.08 6.70 4.76
Hawaii 20,150 37,811 17,132   2 5 11   10.08 7.56 1.56
Idaho 133 2,700 0   1 2 0   0.13 1.35 0.00
Illinois 362,761 958,237 407,650   54 126 54   6.72 7.61 7.55
Indiana 22,766 53,755 68,932   8 6 13   2.85 8.96 5.30
Iowa 22,100 6,041 0   6 4 1   3.68 1.51 0.00
Kansas 25,162 39,923 11,000   8 9 2   3.15 4.44 5.50
Kentucky 31,097 23,855 34,710   7 4 8   4.44 5.96 4.34
Louisiana 13,660 80,450 11,450   4 11 3   3.42 7.31 3.82
Maine 1,467 3,878 7,649   5 5 4   0.29 0.78 1.91
Maryland 137,409 1,001,492 657,280   45 92 109   3.05 10.89 6.03
Massachusetts 1,075,645 4,779,022 2,874,103   287 512 380   3.75 9.33 7.56
Michigan 85,666 156,285 103,009   21 24 15   4.08 6.51 6.87
Minnesota 172,950 478,587 323,978   53 85 38   3.26 5.63 8.53
Mississippi 10,580 30,000 9,140   3 3 3   3.53 10.00 3.05
Missouri 47,881 248,870 62,058   21 18 16   2.28 13.83 3.88
Montana 0 24,820 0   0 2 0   0.00 12.41 0.00
Nebraska 10,436 58,963 6,500   5 7 3   2.09 8.42 2.17
Nevada 1,985 28,250 18,400   2 4 6   0.99 7.06 3.07
New Hampshire 42,628 224,616 75,857   16 30 22   2.66 7.49 3.45
New Jersey 402,077 1,510,888 780,017   63 151 88   6.38 10.01 8.86
New Mexico 22,412 14,215 30,118   5 4 8   4.48 3.55 3.76
New York 406,025 2,104,368 1,285,864   91 289 196   4.46 7.28 6.56
North Carolina 184,939 589,751 510,345   61 91 70   3.03 6.48 7.29
North Dakota 0 1,017 0   0 1 0   0.00 1.02 0.00
Ohio 162,972 233,615 43,508   53 43 31   3.07 5.43 1.40
Oklahoma 31,803 29,800 13,834   7 7 5   4.54 4.26 2.77
Oregon 94,973 233,391 143,287   30 44 31   3.17 5.30 4.62
Pennsylvania 305,140 960,191 763,712   82 135 101   3.72 7.11 7.56
Rhode Island 300 118,709 113,505   1 11 7   0.30 10.79 16.22
South Carolina 91,850 97,141 9,994   13 5 4   7.07 19.43 2.50
South Dakota 0 500 0   0 1 1   0.00 0.50 0.00
Tennessee 146,787 212,801 47,000   24 29 11   6.12 7.34 4.27
Texas 532,761 2,945,371 1,387,544   131 329 179   4.07 8.95 7.75
Utah 52,270 210,147 168,564   15 43 35   3.48 4.89 4.82
Vermont 2,000 11,600 10,143   1 3 9   2.00 3.87 1.13
Virginia 453,255 978,848 391,793   62 137 84   7.31 7.14 4.66
Washington 412,415 1,145,091 1,030,511   76 139 138   5.43 8.24 7.47
West Virginia 0 1,400 3,724   0 2 2   0.00 0.70 1.86
Wisconsin 20,361 93,121 60,300   8 21 19   2.55 4.43 3.17
Wyoming 0 0 6,500   0 0 1   0.00 0.00 6.50
 
Puerto Rico 4,080 32,000 14,291   5 5 3   0.82 6.40 4.76
 

SOURCE: PricewaterhouseCoopers, Venture Economics, and National Venture Capital Association, MoneyTree Survey, special tabulations.

Science and Engineering Indicators 2008

Excel.Source Data
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