Skip all navigation and go to page content.

Chapter 8. State Indicators

Science and Technology in the Economy

Venture Capital Deals as a Percentage of High-Technology Business Establishments



Findings

  • The number of venture capital deals that involved U.S. companies increased from about 2,900 deals in 2003 to nearly 3,300 deals in 2010.
  • In 2010, venture capital deals were concentrated in only a few states. Indicator values ranged from a low of 0.00% to a high of 2.05% with a median value of 0.21%.
  • Companies in high-technology industries located in Massachusetts were the most successful in accessing venture capital investments in 2010, with a 2.05% rate. California companies in high-technology industries obtained venture capital investment at a rate of 1.50%. No other states reached a rate of 1.00%.
  • In 2010, companies in Experimental Program to Stimulate Competitive Research (EPSCoR) states tended to receive little venture capital investment, and no venture capital deals were reported in three EPSCoR states.


Description

This indicator represents 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. High values indicate that high-technology companies in a state are frequently using venture capital to facilitate their growth and development. In most cases, a company will not receive more than one infusion of venture capital in a given year.

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. Venture capital investment can help to grow a high-technology company.

Data on business establishments operating in high-technology industries for the years 2003 through 2008 are based on their classification according to the 2002 edition of the North American Industry Classification System (NAICS). The data for the years 2009 and 2010 are based on their classification according to the 2007 edition of the NAICS. See table 8-A in the chapter introduction for a list of the industries (by NAICS code) that are defined as high technology. Data for years prior to 2003 are not directly comparable.


Data Table

Table 8-58
Venture capital deals as a percentage of high-technology business establishments, by state: 2003, 2007, and 2010
 
Venture capital deals High-technology establishments Venture capital
deals/high-technology
establishments (%)
State 2003 2007 2010 2003 2007 2010 2003 2007 2010
 
United States 2,903 3,948 3,266 590,417 650,707 648,993 0.49 0.61 0.50
Alabama 9 4 2 6,347 6,783 6,786 0.14 0.06 0.03
Alaska 0 0 0 1,345 1,538 1,698 0.00 0.00 0.00
Arizona 16 28 17 10,433 12,540 11,875 0.15 0.22 0.14
Arkansas 3 1 1 4,012 4,550 4,852 0.07 0.02 0.02
California 1,122 1,626 1,289 77,614 87,815 85,787 1.45 1.85 1.50
Colorado 72 97 77 15,532 18,016 18,306 0.46 0.54 0.42
Connecticut 34 37 52 7,827 7,868 7,472 0.43 0.47 0.70
Delaware 1 4 9 3,964 3,573 3,256 0.03 0.11 0.28
District of Columbia 6 17 11 2,589 3,158 3,507 0.23 0.54 0.31
Florida 61 65 39 38,118 44,745 44,577 0.16 0.15 0.09
Georgia 55 76 63 18,820 21,586 21,413 0.29 0.35 0.29
Hawaii 6 4 5 2,097 2,305 2,309 0.29 0.17 0.22
Idaho 5 4 4 2,515 3,107 3,071 0.20 0.13 0.13
Illinois 58 69 60 27,606 29,222 28,886 0.21 0.24 0.21
Indiana 8 17 14 9,626 10,355 10,276 0.08 0.16 0.14
Iowa 1 3 2 4,316 4,679 4,745 0.02 0.06 0.04
Kansas 2 16 36 5,716 6,076 6,144 0.03 0.26 0.59
Kentucky 3 8 14 5,453 5,850 5,913 0.06 0.14 0.24
Louisiana 1 7 3 7,218 7,574 7,850 0.01 0.09 0.04
Maine 2 7 5 2,466 2,612 2,652 0.08 0.27 0.19
Maryland 84 96 70 13,428 15,151 15,589 0.63 0.63 0.45
Massachusetts 378 446 351 17,183 17,470 17,148 2.20 2.55 2.05
Michigan 17 22 33 16,937 17,321 16,555 0.10 0.13 0.20
Minnesota 58 57 26 12,834 13,590 13,014 0.45 0.42 0.20
Mississippi 4 2 0 3,269 3,405 3,496 0.12 0.06 0.00
Missouri 23 17 14 9,562 10,238 9,956 0.24 0.17 0.14
Montana 1 1 2 2,108 2,515 2,593 0.05 0.04 0.08
Nebraska 2 0 3 2,797 3,257 3,361 0.07 0.00 0.09
Nevada 6 8 3 5,387 6,087 6,031 0.11 0.13 0.05
New Hampshire 32 23 10 3,511 3,575 3,539 0.91 0.64 0.28
New Jersey 88 92 71 24,286 24,688 23,686 0.36 0.37 0.30
New Mexico 5 25 13 3,322 3,658 3,611 0.15 0.68 0.36
New York 119 193 266 35,926 38,368 38,636 0.33 0.50 0.69
North Carolina 76 69 57 14,869 17,671 17,967 0.51 0.39 0.32
North Dakota 2 1 0 964 1,075 1,151 0.21 0.09 0.00
Ohio 25 56 52 19,875 20,486 20,180 0.13 0.27 0.26
Oklahoma 2 6 2 6,859 7,512 7,610 0.03 0.08 0.03
Oregon 21 42 33 7,500 8,453 8,587 0.28 0.50 0.38
Pennsylvania 90 158 153 22,266 23,778 23,956 0.40 0.66 0.64
Rhode Island 10 4 13 1,976 2,108 2,071 0.51 0.19 0.63
South Carolina 4 10 8 5,869 6,942 7,010 0.07 0.14 0.11
South Dakota 1 2 0 1,206 1,347 1,426 0.08 0.15 0.00
Tennessee 22 20 18 8,196 8,980 8,702 0.27 0.22 0.21
Texas 165 172 143 45,062 49,237 50,180 0.37 0.35 0.28
Utah 22 33 25 5,474 6,960 7,139 0.40 0.47 0.35
Vermont 6 8 6 1,453 1,570 1,581 0.41 0.51 0.38
Virginia 80 94 51 18,868 22,607 23,623 0.42 0.42 0.22
Washington 81 175 116 13,171 15,138 15,335 0.61 1.16 0.76
West Virginia 5 4 4 2,257 2,352 2,490 0.22 0.17 0.16
Wisconsin 8 21 19 9,035 9,591 9,709 0.09 0.22 0.20
Wyoming 1 1 1 1,353 1,625 1,686 0.07 0.06 0.06
 
Puerto Rico 1 NA 1 NA NA NA NA NA NA
 

NA = not available.

SOURCES: PricewaterhouseCoopers and National Venture Capital Association, special tabulations (2011, 2011, 2013) of the MoneyTree™ Survey (various years); Census Bureau, special tabulations (2007, 2010, 2013) of the Business Information Tracking Series (various years).

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.

Close