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Chapter 8. State Indicators

Science and Technology in the Economy


Venture Capital Disbursed per Venture Capital Deal


Quartiles

Venture capital disbursed per venture capital deal: 2008 (Millions of dollars)
 
1st quartile
($24.00 – $7.34)
2nd quartile
($6.65 – $4.91)
3rd quartile
($4.77 – $2.79)
4th quartile
($2.38 – $0.00)
 
Arizona Florida Alabama‡ Alaska‡
California Georgia Connecticut Arkansas‡
Colorado Illinois District of Columbia Hawaii‡
Delaware‡ Maine‡ Kentucky‡ Idaho‡
Indiana Maryland Missouri Kansas‡
Iowa Michigan New Mexico‡ Louisiana‡
Massachusetts Nebraska‡ Ohio Mississippi‡
Minnesota New Hampshire‡ Oklahoma‡ Nevada‡
Montana‡ New York Pennsylvania North Dakota‡
New Jersey Oregon Rhode Island‡ South Carolina‡
North Carolina Utah Tennessee South Dakota‡
Texas Virginia Vermont‡ Wyoming‡
West Virginia‡ Washington Wisconsin
 
‡ EPSCoR state

SOURCE: PricewaterhouseCoopers, Venture Economics, and National Venture Capital Association, MoneyTree Survey™, special tabulations. See Data Table.



Findings

  • In 2008, the size of the average venture capital investment in the United States was about $7 million per deal. This represented an increase in investment size from about $5 million per deal in 1998 but a decline from $13 million per deal in 2000 expressed in current dollars.
  • The total number of venture capital deals has risen slightly, increasing from 3,632 deals in 1998 to 3,806 in 2008.
  • In 2008, the state distribution on this indicator was skewed from a high value of $24 million per deal to a low of zero, with a median value of $5.03 million per deal. The value of this indicator continued to show a high level of variability from year to year and among 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 stage of investment, type of company, and numerous other factors.

This indicator provides some measure of the magnitude of investment that developing companies in a specific state have attracted from venture capital sources. 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. Eighteen states reported fewer than 10 venture capital deals in 2008. In such states, a single large or small venture capital investment can significantly affect the value of this indicator.

Data Table

Table 8-52
Venture capital disbursed per venture capital deal, by state: 1998, 2003, and 2008
 
  Venture capital disbursed
(current $millions)
  Venture capital deals   Venture capital/deal
(current $millions)
State 1998 2003 2008   1998 2003 2008   1998 2003 2008
 
United States 21,037 19,776 28,284   3,632 2,943 3,806   5.79 6.72 7.43
Alabama 82 30 24   15 9 8   5.49 3.32 3.01
Alaska 0 0 0   0 0 0   0.00 0.00 0.00
Arizona 210 73 208   36 16 20   5.84 4.58 10.40
Arkansas 7 1 0   2 3 0   3.45 0.37 0.00
California 7,955 8,564 14,264   1,388 1,135 1,552   5.73 7.55 9.19
Colorado 726 628 813   122 70 100   5.95 8.97 8.13
Connecticut 373 212 127   74 34 34   5.05 6.24 3.74
Delaware 0 0 63   0 1 6   0.00 0.40 10.45
District of Columbia 47 56 31   3 6 11   15.63 9.35 2.79
Florida 552 309 240   62 62 36   8.90 4.99 6.65
Georgia 431 295 426   98 58 80   4.39 5.09 5.33
Hawaii 4 13 7   3 5 6   1.40 2.56 1.20
Idaho 30 52 12   3 5 6   10.10 10.44 1.98
Illinois 429 377 444   70 56 67   6.13 6.73 6.63
Indiana 39 25 124   8 8 16   4.88 3.06 7.73
Iowa 9 0 40   7 0 5   1.26 0.00 8.04
Kansas 10 25 46   3 11 23   3.47 2.26 1.98
Kentucky 38 5 30   16 3 10   2.34 1.80 2.95
Louisiana 68 1 8   11 1 10   6.18 1.20 0.82
Maine 62 1 20   11 2 4   5.59 0.45 5.05
Maryland 328 348 477   54 87 97   6.08 4.00 4.91
Massachusetts 2,009 2,744 2,974   391 381 405   5.14 7.20 7.34
Michigan 124 80 246   32 16 43   3.88 5.01 5.71
Minnesota 361 233 491   79 58 47   4.57 4.02 10.44
Mississippi 4 1 0   2 4 0   1.75 0.20 0.00
Missouri 611 78 87   19 19 24   32.16 4.13 3.60
Montana 0 0 16   0 0 2   0.00 0.00 7.80
Nebraska 29 205 16   5 3 3   5.82 68.20 5.33
Nevada 24 40 13   10 6 6   2.42 6.70 2.10
New Hampshire 185 154 181   26 32 28   7.11 4.82 6.47
New Jersey 476 886 708   76 90 90   6.27 9.85 7.87
New Mexico 8 4 69   4 5 19   1.93 0.72 3.65
New York 1,299 660 1,299   193 118 235   6.73 5.59 5.53
North Carolina 327 387 459   82 77 51   3.98 5.02 9.00
North Dakota 1 15 0   1 2 2   0.50 7.25 0.20
Ohio 309 179 248   63 28 52   4.91 6.39 4.77
Oklahoma 101 31 17   11 2 5   9.22 15.55 3.46
Oregon 54 108 176   18 21 35   2.97 5.12 5.03
Pennsylvania 562 499 693   138 97 171   4.07 5.15 4.05
Rhode Island 26 66 39   5 10 10   5.20 6.55 3.92
South Carolina 137 14 26   16 4 11   8.56 3.58 2.38
South Dakota 0 4 1   0 1 1   0.00 3.50 0.50
Tennessee 108 84 65   24 23 21   4.48 3.67 3.10
Texas 1,171 1,250 1,283   188 168 146   6.23 7.44 8.79
Utah 117 107 194   33 22 33   3.54 4.84 5.87
Vermont 1 5 43   2 6 9   0.70 0.87 4.77
Virginia 766 413 484   102 82 81   7.51 5.04 5.97
Washington 736 464 955   109 83 164   6.75 5.58 5.82
West Virginia 2 13 24   1 5 1   2.00 2.52 24.00
Wisconsin 90 38 75   16 8 19   5.64 4.70 3.96
Wyoming 0 0 2   0 0 1   0.00 0.00 1.50
                       
Puerto Rico NA NA NA   NA NA NA   NA NA NA
 

NA = not available

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

Science and Engineering Indicators 2010

Source Data
 

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