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Chapter 8. State Indicators

Science and Technology in the Economy

Venture Capital Disbursed per $1,000 of Gross Domestic Product



Findings

  • The total amount of venture capital invested in the United States has increased from $22 billion in 2002 to nearly $27 billion in 2012. The average value for venture capital disbursed per $1,000 of gross domestic product for the United States was $2.08 in 2002 and $1.73 in 2012.
  • Venture capital investment is concentrated in relatively few states. Companies in California received more than 50% of the total venture capital disbursed in the United States in 2012, followed by companies in Massachusetts with 12%. Three states reported no venture capital investment in 2012, and a total of 11 states reported less than $10 million.
  • In 2012, the value of this indicator across states ranged from $0.00 to $7.74.
  • The average indicator value for Experimental Program to Stimulate Competitive Research (EPSCoR) states was substantially lower than that for non-EPSCoR states. The state distribution of venture capital was similar to indicators of high-technology business activity.


Description

Venture capital represents an important source of funding for startup companies. It supports the growth and expansion of these companies early in their development, before they establish a predictable sales history that would qualify them for other types of financing.

This indicator represents the relative magnitude of venture capital investments in a state after adjusting for the size of the state’s economy. The indicator is expressed as dollars of venture capital disbursed per $1,000 of gross domestic product. High values indicate that companies in those states are successfully attracting venture capital to fuel their growth. Access to venture capital financing varies greatly among states.

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, initial public offerings, and other forms of private equity that do not involve cash. Results are updated periodically. All data are subject to change at any time.


Data Table

Table 8-57
Venture capital disbursed per $1,000 of gross domestic product, by state: 2002, 2007, and 2012
 
Venture capital disbursed ($millions) State GDP ($millions) Venture capital ($)/$1,000 GDP
State 2002 2007 2012 2002 2007 2012 2002 2007 2012
 
United States 22,010 30,871 26,873 10,572,388 13,936,196 15,566,076 2.08 2.22 1.73
Alabama 57 31 23 125,168 165,665 183,547 0.46 0.19 0.13
Alaska 0 0 0 28,894 44,540 51,859 0.00 0.00 0.00
Arizona 197 203 222 177,068 259,157 266,891 1.11 0.78 0.83
Arkansas 10 0 5 74,167 97,470 109,557 0.13 0.00 0.05
California 9,528 14,735 14,194 1,387,213 1,870,916 2,003,479 6.87 7.88 7.08
Colorado 537 610 585 186,529 242,633 274,048 2.88 2.51 2.13
Connecticut 183 296 158 168,865 221,133 229,317 1.08 1.34 0.69
Delaware 19 7 9 43,672 59,592 65,984 0.44 0.12 0.14
District of Columbia 20 91 64 67,924 91,896 109,793 0.29 0.99 0.58
Florida 410 768 199 536,061 760,936 777,164 0.76 1.01 0.26
Georgia 565 475 262 313,952 399,579 433,569 1.80 1.19 0.60
Hawaii 4 5 1 44,752 64,070 72,424 0.09 0.08 0.01
Idaho 11 16 15 37,729 54,273 58,243 0.29 0.29 0.26
Illinois 309 505 570 497,802 626,611 695,238 0.62 0.81 0.82
Indiana 40 83 84 208,674 261,755 298,625 0.19 0.32 0.28
Iowa 2 6 5 98,584 134,053 152,436 0.02 0.04 0.03
Kansas 7 82 47 91,671 120,599 138,953 0.08 0.68 0.34
Kentucky 14 53 24 121,436 150,487 173,466 0.12 0.35 0.14
Louisiana 19 16 11 139,202 207,312 243,264 0.14 0.08 0.05
Maine 15 5 13 39,989 49,065 53,656 0.38 0.10 0.24
Maryland 637 613 284 206,624 271,985 317,678 3.08 2.25 0.89
Massachusetts 2,530 3,714 3,127 288,352 352,378 403,823 8.77 10.54 7.74
Michigan 108 105 237 351,832 386,591 400,504 0.31 0.27 0.59
Minnesota 403 488 253 201,559 253,374 294,729 2.00 1.93 0.86
Mississippi 5 6 10 69,527 92,107 101,490 0.07 0.07 0.10
Missouri 76 92 21 192,189 232,959 258,832 0.40 0.39 0.08
Montana 0 4 6 23,781 35,085 40,422 0.00 0.11 0.15
Nebraska 13 0 11 61,384 82,135 99,557 0.21 0.00 0.11
Nevada 32 29 7 82,764 133,185 133,584 0.39 0.22 0.05
New Hampshire 208 135 61 46,730 57,868 64,697 4.45 2.33 0.94
New Jersey 905 632 444 376,922 471,372 508,003 2.40 1.34 0.87
New Mexico 54 129 36 53,662 74,356 80,600 1.01 1.73 0.45
New York 799 1,130 1,864 822,408 1,076,255 1,205,930 0.97 1.05 1.55
North Carolina 563 547 197 302,201 396,740 455,973 1.86 1.38 0.43
North Dakota 0 0 2 20,439 28,549 46,016 0.00 0.00 0.05
Ohio 268 193 286 397,966 467,138 509,393 0.67 0.41 0.56
Oklahoma 33 8 34 98,778 140,378 160,953 0.33 0.06 0.21
Oregon 151 312 124 119,571 167,088 198,702 1.26 1.87 0.62
Pennsylvania 456 819 521 424,103 531,098 600,897 1.08 1.54 0.87
Rhode Island 96 7 85 38,135 47,293 50,956 2.52 0.15 1.67
South Carolina 80 87 39 124,391 157,712 176,217 0.64 0.55 0.22
South Dakota 18 4 0 27,610 34,885 42,464 0.65 0.11 0.00
Tennessee 116 125 87 193,069 242,220 277,036 0.60 0.52 0.31
Texas 1,296 1,468 934 782,780 1,147,404 1,397,369 1.66 1.28 0.67
Utah 136 188 318 74,603 108,474 130,486 1.82 1.73 2.44
Vermont 4 9 4 19,599 24,043 27,296 0.20 0.37 0.16
Virginia 429 557 372 290,904 389,570 445,876 1.47 1.43 0.83
Washington 580 1,383 908 237,117 325,118 375,730 2.45 4.25 2.42
West Virginia 16 10 15 44,533 56,864 69,380 0.36 0.18 0.22
Wisconsin 51 90 95 190,241 236,522 261,548 0.27 0.38 0.36
Wyoming 0 0 0 19,262 33,708 38,422 0.00 0.00 0.00
 
Puerto Rico NA NA 0 74,827 93,263 NA NA NA NA
 

NA = not available.

GDP = gross domestic product.

SOURCES: PricewaterhouseCoopers and National Venture Capital Association, special tabulations (2011, 2011, 2013) of the MoneyTree™ Survey (various years); Bureau of Economic Analysis, Gross Domestic Product data (June 2013).

Science and Engineering Indicators 2014


State Data Tool

The state data tool allows interactive exploration of the 58 indicators in this chapter. Users have the ability to choose and explore a single indicator in-depth, compare multiple indicators for preselected groups, customize their own graphics, or download data tables. Click the button below to get started.

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