The Martin Prosperity Institute recently produced an interesting study of Venture Capital called “Start-Up City The Urban Shift in Venture Capital and High Technology”. It concluded that Venture Capital Activity and the businesses being funded are now being concentrated in larger metropolitan areas. As expected the San Francisco and environs and the Boston to Washington DC Area saw significant investment and a large number of deals. However, now New York City which previously was a large source of funds but not the location of the actual businesses has now become a home of many of these businesses. San Francisco actually led the country. That and the fact that more of these businesses are actually locating in large cities is a new trend.
Another that is of particular interest to us is that several cities with large universities are leaders on a per capita basis in both dollars invested and in numbers of deals. So while Austin, Texas and the research triangle in North Carolina have always been leaders in investments and deals the study notes that Bolder Colorado, Lawrence, Kansas and Ann Arbor Michigan are significant for their activity. Ann Arbor placed 11th in the dollar amount of investment per 100,000 of population at $24.1M and 5th in the country with 6.4 deals per 100,000 of population.
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