Town that raked in essentially the most money could shock you
In 2014, greater than 40% of U.S. seed- and early-stage enterprise {dollars} went to Bay Space startups.
However that was a very long time in the past.
Lately, Bay Space startups have accounted for a smaller proportion of U.S. VC funding, in response to “Past Silicon Valley,” a brand new report co-produced by enterprise agency Revolution and PitchBook. To this point in 2021, solely about 27% of U.S. VC {dollars} have gone to Bay Space startups. It’s been greater than 10 years since that proportion fell under 30%, the research mentioned, although the nation is on monitor to see report quantities of enterprise funding total this yr. We dug into the report and talked to Revolution CEO and Chairman Steve Case in regards to the findings.
Picture Credit: Revolution/PitchBook
Case is the founding father of the Revolution trio of funds (together with the Rise of the Relaxation Seed Fund), which focus solely on investing exterior of Silicon Valley. Since launching the platform in 2014, Case and his groups have invested in 194 corporations throughout 89 cities.
Not solely is 2021 a report yr for {dollars} raised, it’s panning out to be a report yr for Bay Space- and NYC-based VCs who’re investing in startups exterior their areas. As lately as 2017, greater than 50% of early-stage Bay Space {dollars} had been acquired by Bay Space startups. Right this moment, that proportion is 37%, in response to the Revolution/PitchBook report.
In every of the previous two years, no less than $11 billion of Bay Space capital has been invested exterior the three main ecosystems. A decade in the past, that determine was underneath $3 billion.
“Once we take a look at the industries of the long run, and the businesses of the long run, they’re going to be dispersed across the nation and all over the world and if all you’re doing is investing in your individual yard, you’re going to overlook out on all of the alternatives to spend money on a number of the iconic corporations of the long run,” Case informed TechCrunch.