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Old Posted Nov 14, 2019, 9:12 PM
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craigs craigs is offline
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Join Date: May 2019
Location: Los Angeles
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Quote:
Originally Posted by iheartthed View Post
These are numbers that I pulled out of my ass to make a general point, but I wasn't that far off on the Bay Area's share of venture capital:

Also, I think the overall pool of venture capital has probably expanded a bit since 2009, so the Bay Area's share of VC could drop and the total capital invested could have still increased. Actually, I'm almost certain that that has happened.
The article below is from earlier this year (your source is two years old) and analyzes 2018 venture capital funding nationwide. The Bay Area does indeed get less than 50% of total venture capital, but remains by far the biggest regional player, and has not lost 50% of its share over the last decade as you erroneously asserted. Also, the article notes venture capital is shifting north from the San Jose MSA to the San Francisco MSA.

Venture Capital Keeps Flowing to the Same Places
The latest data show regions outside the big VC magnets of San Francisco, Silicon Valley, New York and Boston capturing more deals, but not many more.

Justin Fox
Bloomberg.com
January 8, 2019

Among the biggest economic stories in the U.S. over the past couple of decades has been the increasing concentration of wealth in a few “superstar” metropolitan areas. Recently, many people — myself included — have been looking hopefully for signs that maybe the situation is changing at least a little. One place to look is in the venture capital data, since VC investment presumably presages future growth. But most VC investment in 2018 went the same places it’s been going for a while now.
...
But nine of the 15 rest-of-the-U.S. regions have actually lost deal share since 2007, and the two regions with by far the largest deal-share gains have been San Francisco and New York.

The two biggest regional developments in U.S. venture capital over the past decade, then, have been activity shifting northward in the San Jose/San Francisco Bay Area... and New York City establishing itself as a major center of startup activity. If you just look at the last five years, San Francisco’s dominance has slipped a little, and more rest-of-the-U.S. regions have made gains. But overall, the VC data still seems mainly to show how resilient the superstars remain.
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