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Chapter 8. State Indicators

Science and Technology in the Economy

Venture Capital Disbursed per Venture Capital Deal



Findings

  • In 2012, the size of the average venture capital investment in the United States was about $7.1 million per deal. This is essentially unchanged from the same investment per deal in 2002.
  • The value of this indicator continued to show a high level of variability from year to year and among states.
  • The total number of venture capital deals fluctuated between 2002 and 2012. There were 3,101 such deals in 2002, which rose to 3,948 in 2007 and then decreased slightly to 3,769 in 2012.
  • Among those states that received venture capital investments in 2012, the state distribution on this indicator was skewed from a high value of nearly $14 million per deal to a low of $300,000 per deal, with a median value of about $4.9 million per deal.


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, 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.

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-two states reported fewer than 10 venture capital deals in 2012. In such states, a single large or small venture capital investment can substantially affect the value of this indicator.


Data Table

Table 8-59
Venture capital disbursed per venture capital deal, by state: 2002, 2007, and 2012
 
Venture capital
disbursed ($millions)
Venture capital deals Venture capital/
deal ($millions)
State 2002 2007 2012 2002 2007 2012 2002 2007 2012
 
United States 22,010 30,871 26,873 3,101 3,948 3,769 7.10 7.82 7.13
Alabama 57 31 23 13 4 6 4.38 7.75 3.83
Alaska 0 0 0 0 0 0 0.00 0.00 0.00
Arizona 197 203 222 24 28 16 8.21 7.25 13.88
Arkansas 10 0 5 5 1 1 2.00 0.00 5.00
California 9,528 14,735 14,194 1,074 1,626 1,551 8.87 9.06 9.15
Colorado 537 610 585 88 97 103 6.10 6.29 5.68
Connecticut 183 296 158 38 37 52 4.82 8.00 3.04
Delaware 19 7 9 2 4 7 9.50 1.75 1.29
District of Columbia 20 91 64 6 17 27 3.33 5.35 2.37
Florida 410 768 199 58 65 34 7.07 11.82 5.85
Georgia 565 475 262 79 76 53 7.15 6.25 4.94
Hawaii 4 5 1 2 4 3 2.00 1.25 0.33
Idaho 11 16 15 2 4 4 5.50 4.00 3.75
Illinois 309 505 570 77 69 83 4.01 7.32 6.87
Indiana 40 83 84 11 17 17 3.64 4.88 4.94
Iowa 2 6 5 1 3 1 2.00 2.00 5.00
Kansas 7 82 47 7 16 11 1.00 5.13 4.27
Kentucky 14 53 24 3 8 7 4.67 6.63 3.43
Louisiana 19 16 11 8 7 4 2.38 2.29 2.75
Maine 15 5 13 4 7 6 3.75 0.71 2.17
Maryland 637 613 284 91 96 51 7.00 6.39 5.57
Massachusetts 2,530 3,714 3,127 373 446 419 6.78 8.33 7.46
Michigan 108 105 237 26 22 50 4.15 4.77 4.74
Minnesota 403 488 253 56 57 30 7.20 8.56 8.43
Mississippi 5 6 10 3 2 4 1.67 3.00 2.50
Missouri 76 92 21 28 17 10 2.71 5.41 2.10
Montana 0 4 6 0 1 6 0.00 4.00 1.00
Nebraska 13 0 11 3 0 4 4.33 0.00 2.75
Nevada 32 29 7 6 8 4 5.33 3.63 1.75
New Hampshire 208 135 61 38 23 8 5.47 5.87 7.63
New Jersey 905 632 444 91 92 57 9.95 6.87 7.79
New Mexico 54 129 36 7 25 15 7.71 5.16 2.40
New York 799 1,130 1,864 154 193 333 5.19 5.85 5.60
North Carolina 563 547 197 85 69 37 6.62 7.93 5.32
North Dakota 0 0 2 0 1 1 0.00 0.00 2.00
Ohio 268 193 286 49 56 61 5.47 3.45 4.69
Oklahoma 33 8 34 4 6 7 8.25 1.33 4.86
Oregon 151 312 124 26 42 29 5.81 7.43 4.28
Pennsylvania 456 819 521 96 158 182 4.75 5.18 2.86
Rhode Island 96 7 85 14 4 15 6.86 1.75 5.67
South Carolina 80 87 39 7 10 5 11.43 8.70 7.80
South Dakota 18 4 0 2 2 1 9.00 2.00 0.00
Tennessee 116 125 87 22 20 32 5.27 6.25 2.72
Texas 1,296 1,468 934 172 172 160 7.53 8.53 5.84
Utah 136 188 318 28 33 44 4.86 5.70 7.23
Vermont 4 9 4 6 8 4 0.67 1.13 1.00
Virginia 429 557 372 85 94 81 5.05 5.93 4.59
Washington 580 1,383 908 108 175 116 5.37 7.90 7.83
West Virginia 16 10 15 8 4 3 2.00 2.50 5.00
Wisconsin 51 90 95 11 21 14 4.64 4.29 6.79
Wyoming 0 0 0 0 1 0 0.00 0.00 0.00
 
Puerto Rico NA NA 0 NA NA 1 NA NA 0.00
 

NA = not available.

NOTE: Venture capital amounts are reported in current dollars.

SOURCE: PricewaterhouseCoopers and National Venture Capital Association, special tabulations (2011, 2011, 2013) of the MoneyTree™ Survey (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.

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