Skip all navigation and go to page content

Chapter 8. State Indicators

Science and Technology in the Economy


Venture Capital Deals as Share of High-Technology Business Establishments


Quartiles

Venture capital deals as share of high-technology business establishments: 2006 (Percent)
 
1st quartile
(2.31% – 0.40%)
2nd quartile
(0.39% – 0.19%)
3rd quartile
(0.15% – 0.10%)
4th quartile
(0.08% – 0.00%)
 
California Arizona Alabama‡ Alaska‡
Colorado Connecticut Arkansas‡ Delaware‡
Hawaii‡ District of Columbia Florida Idaho‡
Maryland Georgia Indiana Iowa
Massachusetts Illinois Kansas‡ Louisiana‡
New Hampshire‡ Minnesota Kentucky‡ Mississippi‡
New York New Jersey Maine‡ Montana‡
Pennsylvania New Mexico‡ Michigan North Dakota‡
Texas North Carolina Missouri Oklahoma‡
Utah Ohio Nebraska‡ South Carolina‡
Vermont‡ Oregon Nevada‡ South Dakota‡
Virginia Rhode Island‡ Tennessee Wyoming‡
Washington Wisconsin West Virginia‡
 
‡ EPSCoR state

SOURCES: PricewaterhouseCoopers, Venture Economics, and National Venture Capital Association, MoneyTree Survey™, special tabulations; and Census Bureau, Business Information Tracking Series, special tabulations. See Data Table.



Findings

  • The number of venture capital deals that involved U.S. companies increased from about 2,900 deals in 2003 to about 3,700 deals in 2006.
  • In 2006, venture capital deals were concentrated in only a few states. Indicator values ranged from a high of 2.31% to a low of zero with a median value of 0.20%.
  • Companies in high-technology industries located in Massachusetts were the most successful in accessing venture capital investments in 2006, with a 2.31% rate. California companies in high-technology industries obtained venture capital investment at a rate of 1.81%. No other states reached a rate of 1.00%.
  • In 2006, companies in EPSCoR states tended to receive little venture capital investment, and no venture capital deals were reported in three EPSCoR 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.

Data Table

Table 8-51
Venture capital deals as share of high-technology business establishments, by state: 2003, 2004, and 2006
 
  Venture capital deals   High-technology establishments   Venture capital deals/
high-technology establishment (%)
State 2003 2004 2006   2003 2004 2006   2003 2004 2006
 
United States 2,903 3,036 3,672   590,417 603,642 633,727   0.49 0.50 0.58
Alabama 9 5 7   6,347 6,407 6,613   0.14 0.08 0.11
Alaska 0 0 0   1,345 1,358 1,494   0.00 0.00 0.00
Arizona 16 12 29   10,433 10,901 11,942   0.15 0.11 0.24
Arkansas 3 1 6   4,012 4,142 4,373   0.07 0.02 0.14
California 1,122 1,225 1,549   77,614 79,288 85,514   1.45 1.55 1.81
Colorado 72 75 98   15,532 16,027 17,259   0.46 0.47 0.57
Connecticut 34 32 30   7,827 7,794 7,810   0.43 0.41 0.38
Delaware 1 1 3   3,964 3,907 3,700   0.03 0.03 0.08
District of Columbia 6 8 8   2,589 2,695 3,062   0.23 0.30 0.26
Florida 61 57 56   38,118 40,165 43,678   0.16 0.14 0.13
Georgia 55 73 81   18,820 19,424 20,825   0.29 0.38 0.39
Hawaii 6 4 10   2,097 2,152 2,325   0.29 0.19 0.43
Idaho 5 2 1   2,515 2,582 2,912   0.20 0.08 0.03
Illinois 58 51 55   27,606 28,200 28,821   0.21 0.18 0.19
Indiana 8 9 15   9,626 9,858 10,158   0.08 0.09 0.15
Iowa 1 4 2   4,316 4,324 4,548   0.02 0.09 0.04
Kansas 2 9 7   5,716 5,900 6,035   0.03 0.15 0.12
Kentucky 3 5 7   5,453 5,585 5,769   0.06 0.09 0.12
Louisiana 1 3 3   7,218 7,192 7,439   0.01 0.04 0.04
Maine 2 3 4   2,466 2,541 2,612   0.08 0.12 0.15
Maryland 84 85 110   13,428 13,974 14,632   0.63 0.61 0.75
Massachusetts 378 365 395   17,183 17,305 17,107   2.20 2.11 2.31
Michigan 17 19 18   16,937 16,988 17,049   0.10 0.11 0.11
Minnesota 58 47 39   12,834 13,055 13,348   0.45 0.36 0.29
Mississippi 4 5 1   3,269 3,274 3,336   0.12 0.15 0.03
Missouri 23 10 13   9,562 9,745 10,130   0.24 0.10 0.13
Montana 1 0 0   2,108 2,229 2,415   0.05 0.00 0.00
Nebraska 2 0 3   2,797 2,864 3,072   0.07 0.00 0.10
Nevada 6 5 7   5,387 5,493 5,975   0.11 0.09 0.12
New Hampshire 32 23 21   3,511 3,559 3,554   0.91 0.65 0.59
New Jersey 88 88 94   24,286 24,256 24,534   0.36 0.36 0.38
New Mexico 5 8 9   3,322 3,385 3,553   0.15 0.24 0.25
New York 119 149 209   35,926 36,706 37,346   0.33 0.41 0.56
North Carolina 76 57 62   14,869 15,426 16,908   0.51 0.37 0.37
North Dakota 2 1 0   964 972 1,035   0.21 0.10 0.00
Ohio 25 32 41   19,875 20,120 20,347   0.13 0.16 0.20
Oklahoma 2 11 6   6,859 6,965 7,301   0.03 0.16 0.08
Oregon 21 27 31   7,500 7,659 8,083   0.28 0.35 0.38
Pennsylvania 90 92 128   22,266 22,796 23,486   0.40 0.40 0.55
Rhode Island 10 7 7   1,976 2,043 2,059   0.51 0.34 0.34
South Carolina 4 5 3   5,869 6,048 6,551   0.07 0.08 0.05
South Dakota 1 3 1   1,206 1,234 1,266   0.08 0.24 0.08
Tennessee 22 23 11   8,196 8,226 8,772   0.27 0.28 0.13
Texas 165 162 188   45,062 45,522 47,520   0.37 0.36 0.40
Utah 22 27 39   5,474 5,716 6,531   0.40 0.47 0.60
Vermont 6 4 9   1,453 1,498 1,535   0.41 0.27 0.59
Virginia 80 73 89   18,868 19,758 21,678   0.42 0.37 0.41
Washington 81 114 143   13,171 13,480 14,411   0.61 0.85 0.99
West Virginia 5 3 3   2,257 2,259 2,308   0.22 0.13 0.13
Wisconsin 8 10 20   9,035 9,249 9,438   0.09 0.11 0.21
Wyoming 1 2 1   1,353 1,396 1,558   0.07 0.14 0.06
                       
Puerto Rico 1 1 2   NA NA NA   NA NA NA
 

NA = not available

SOURCES: PricewaterhouseCoopers, Venture Economics, and National Venture Capital Association, MoneyTree™ Survey, special tabulations; and Census Bureau, 1989–2006 Business Information Tracking Series, special tabulations.

Science and Engineering Indicators 2010

Source Data
 

Science and Engineering Indicators 2010   Arlington, VA (NSB 10-01) | January 2010