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Chapter 8. State Indicators

Science and Technology in the Economy

Venture capital disbursed per venture capital deal



Findings

  • In 2010, the size of the average venture capital investment in the United States was about $6.7 million per deal. This is a decline from $13 million per deal in 2000 expressed in current dollars. The size of venture capital deals has not changed appreciably since 2005.
  • After a high venture capital investment in 2000 of over 7,800 deals, the total number of deals has remained essentially constant for the second half of the decade at 3,152 in 2005 and 3,266 in 2010.
  • In 2010, the state distribution on this indicator was skewed from a high value of $26 million per deal to a low of zero, with a median value of about $5 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 represents 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.

Venture capital data measure cash-for-equity investments by the professional venture capital community in private emerging companies in the United States. Data exclude debt, buy-outs, recapitalizations, IPOs, and other forms of private equity that do not involve cash. Results are updated periodically. All data are subject to change at any time.

This indicator provides some measure of the magnitude of investment that developing companies in a 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. Twenty states reported fewer than 10 venture capital deals in 2010. In such states, a single large or small venture capital investment can substantially affect the value of this indicator.

Data Table

Table 8-58
Venture capital disbursed per venture capital deal, by state: 2000, 2005, and 2010
 
  Venture capital disbursed ($millions)   Venture capital deals   Venture capital/deal ($millions)
State 2000 2005 2010   2000 2005 2010   2000 2005 2010
 
United States 104,678 23,115 21,799   7,873 3,152 3,266   13.30 7.33 6.67
Alabama 266 20 1   28 3 2   9.51 6.73 0.30
Alaska 4 0 0   1 0 0   3.50 0.00 0.00
Arizona 626 123 83   64 25 17   9.77 4.94 4.88
Arkansas 34 13 5   5 2 1   6.86 6.30 5.00
California 43,034 11,011 10,978   2,938 1,310 1,289   14.65 8.40 8.52
Colorado 4,165 644 468   218 76 77   19.10 8.47 6.07
Connecticut 1,509 202 200   116 32 52   13.01 6.30 3.85
Delaware 135 7 31   4 3 9   33.68 2.40 3.45
District of Columbia 478 28 96   44 11 11   10.87 2.52 8.77
Florida 2,687 329 186   185 55 39   14.52 5.98 4.76
Georgia 2,325 254 333   223 63 63   10.43 4.04 5.29
Hawaii 203 12 11   3 4 5   67.67 2.98 2.30
Idaho 20 8 8   4 2 4   4.88 4.00 1.94
Illinois 2,358 277 575   199 54 60   11.85 5.14 9.59
Indiana 269 104 69   26 10 14   10.35 10.36 4.90
Iowa 31 32 52   4 4 2   7.70 8.03 25.75
Kansas 265 2 42   22 4 36   12.04 0.43 1.16
Kentucky 202 32 12   14 3 14   14.41 10.67 0.85
Louisiana 113 4 18   15 4 3   7.51 1.00 5.98
Maine 140 5 2   15 2 5   9.35 2.25 0.44
Maryland 1,820 488 357   175 101 70   10.40 4.84 5.10
Massachusetts 10,312 2,583 2,373   766 366 351   13.46 7.06 6.76
Michigan 337 81 152   53 19 33   6.36 4.25 4.59
Minnesota 1,039 242 140   109 43 26   9.53 5.64 5.37
Mississippi 20 10 0   3 2 0   6.50 5.00 0.00
Missouri 590 56 61   49 10 14   12.05 5.60 4.35
Montana 17 27 2   3 2 2   5.57 13.70 0.96
Nebraska 143 13 12   10 3 3   14.31 4.37 3.83
Nevada 31 159 29   10 9 3   3.08 17.61 9.53
New Hampshire 751 92 57   56 24 10   13.40 3.85 5.69
New Jersey 3,290 887 451   185 74 71   17.79 11.99 6.35
New Mexico 21 76 23   8 15 13   2.64 5.09 1.78
New York 6,835 1,127 1,339   605 129 266   11.30 8.74 5.03
North Carolina 1,825 395 456   153 51 57   11.93 7.74 8.00
North Dakota 6 0 0   1 0 0   6.10 0.00 0.00
Ohio 976 140 157   77 38 52   12.67 3.68 3.02
Oklahoma 53 0 13   9 0 2   5.83 0.00 6.50
Oregon 793 134 174   68 26 33   11.66 5.17 5.26
Pennsylvania 2,873 482 508   254 99 153   11.31 4.86 3.32
Rhode Island 75 76 65   9 13 13   8.29 5.87 4.99
South Carolina 448 3 21   13 1 8   34.43 2.70 2.59
South Dakota 0 0 0   1 0 0   0.30 0.00 0.00
Tennessee 453 89 52   45 21 18   10.07 4.22 2.89
Texas 6,094 1,175 891   466 168 143   13.08 6.99 6.23
Utah 674 192 143   61 28 25   11.04 6.86 5.72
Vermont 46 35 33   4 5 6   11.60 7.04 5.47
Virginia 3,310 526 375   275 87 51   12.03 6.04 7.36
Washington 2,790 837 613   254 126 116   10.98 6.64 5.29
West Virginia 5 11 4   2 5 4   2.25 2.10 0.94
Wisconsin 192 69 122   21 16 19   9.13 4.28 6.41
Wyoming 0 4 10   0 4 1   0.00 1.00 10.00
                       
Puerto Rico NA NA 4   10 1 1   NA NA 4.49
 

NA = not available

NOTE: Venture capital amounts reported in current dollars.

SOURCE: PricewaterhouseCoopers and National Venture Capital Association, special tabulations (2011) of MoneyTree™ Survey.

Science and Engineering Indicators 2012

Source Data

State Data Tool

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