Q1 2023: Top 10 US Cities by Venture Capital Investment; Nashville soars to 5th
 

This is according to Crunchbase. WOW@Nashville:ok:

Top 10 US Cities by Venture Capital, Q1 2023:

1 San Francisco Bay Area-------$25.7 Billion

2 Greater New York---------------$3.8 Billion

3 Greater Boston------------------$2.9 Billion

4 Greater Los Angeles-------------$1.1 Billion

5 Nashville Metro-----------------$900 Million

6 Greater Austin------------------$800 Million

7 San Diego-----------------------$700 Million

8 Greater Denver-----------------$700 Million

9 Greater Washington DC--------$700 Million

10 Phoenix Metro-----------------$600 Million

https://www.ey.com/en_us/growth/vent...estment-trends[/QUOTE]

I thought Bay Area tech was dead? Everyone moved to Miami...

Speaking of Miami, its absence in the top 10 is rather conspicuous.

Isnt this just Venture Captial? I am blocked at work is this tech specific?

Not really. That place is just over hyped like crazy for anything. I give it a 1-2 more years when the hype fades away. Already starting.

Nashville is really starting to take it's thunder. Even took it's Crypto convention away. I'm not a crypto fan, but that's a sign after Miami was the center for that.

https://therealdeal.com/miami/2023/0...ly-data-shows/

Hell, I bet Tampa is taking away from Miami these days. Someone told me it's Florida's tech capital.

Everyone to Miami people means "5 companies".

As of April 2023, Miami dropped to #17th in venture capital according to the Miami Herald.

I think its more that CEO's and finance guys from the northeast have decided to relocate to their 2nd homes in Florida post covid but that doesn't mean the companies did.

Two healthcare companies accounted for a huge amount of the Nashville funding round in Q1. Monogram Health, which banked one of the region's biggest venture rounds ever, at $375 million; and Wellvana Health, which reported an $84 million raise in March.

Not dead but I think the heyday is over for a while.

Well, those people left but the capital didn't follow them.

The real narrative is total VC is still down a lot. Bay Area is still the spot for startups none the less.

I will say, putting my Philly cap on, I was surprised to not see my city on here.

and what's extra strange is when you look up local articles about the Pitchbook data that EY is citing in their article, the numbers don't actually line up.

For instance, AZ Innov, has an article published citing the same report:
Venture capital deals in Arizona decline in Q1, report says

What's doubly strange is when you look up Philadelphia local articles about the same report:
Philly’s Q1 2023 VC breakdown: Dollars are down from last year, but deals are still flowing

While both cities do start with "Ph", I'm pretty sure my reading comprehension skills tell me that only one of them actually raised $600mn in the first quarter of 2023 lol. Like where am I misreading it? Or did EY really put the wrong city in the chart?

I was also surprised not to see Philadelphia on EY’s list, as it’s been in the top 5-10 for VC deals for the past few years now. Is it possible EY made a mistake or has some incorrect information in there? Seems to be the case.

Interesting that this PDF from the National Venture Capital Association has completely different numbers and cities than what EY has:

https://nvca.org/wp-content/uploads/...Q1_23_VM_U.pdf

I would say this EY “information” is suspect and likely inaccurate.

The top 10 here are:

1. San Francisco - $15.5B
2. NYC - $5.1B
3. Boston - $3.0B
4. Los Angeles - $2.3B
5. Denver - $1.0B
6. Washington DC - $800M
7. Philadelphia - $700M
8. Seattle - $700M
9. Chicago - $600M
10. Miami - $300M

Good catch, guys. NVCA is also THE organization whose fundamental purpose is to track these kinds of numbers.

EY numbers seem very suspect. I kinda doubt Bay Area capital deployment is 10x NYC. If so, I have a LOT of questions about what they are funding out there.

I think 3x sounds more reasonable, but even that would still mean that the Bay Area is pumping money into older companies rather than seeding new ones. Manhattan recently overtook all of the Bay Area counties as the place with the most funded early stage companies: https://skyscraperpage.com/forum/sho...d.php?t=254764

Like all good SSPers, I support whichever list boosts my homer biases and political narratives. :)

It would be interesting to see why these lists are pretty different, though. Too lazy to look into the differing inclusion criteria.

Except EY stands for Ernst & Young, whose list comes from Crunchbase, which is just as widely respected as NCVA, so while I am perfectly willing to entertain the idea that these sources might have different criteria, what we're not going to do is undermine the legitimacy of a list because we don't like the results.:haha:

Well, the Bay Area usually has most of the biggest dollar value deals, regardless as to how many deals there were, and your source ranks counties, which is fine, but from your own source by region it's pretty much as expected:

Greater Bay Area-------------1,041
Greater New York---------------644
Greater Los Angeles------------388
Greater Boston------------------301

That list ranks based on the overly restrictive parameters of the designated borders of county govt. To me, the only stats that are really meaningful are the ones based on a region, which include different city & county boundaries all bunched together.

The Bay Area number is driven by a couple of mega investments. One of them is the Stripe Series I round from March, where they raised over $6 billion. If you look at the EY dashboard, the Bay Area's performance in Q1 23 was 3x what it was the previous quarter. The massive increase was driven by two large investments, which is mentioned in the EY write up.

In the previous quarter, the Bay Area was just a little under 2x NYC, which is probably what it will settle back down to in after this quarter is done. Nashville's jump is also based on just one investment in solar panels or something. Expect it to slide back down next quarter.

EY VC dashboard