Austin, Texas – Venture Capital’s Top 10 Lone Star
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The list of cities that receive the most venture capital is typically dominated by several cities in California and also features Cambridge, Massachusetts and New York, NY. These cities are the unsurprising usual suspects. At times, other cities make their way in but one city outside of the big 3 states that consistently appears on the top 10 cities of venture capital is Austin, Texas. In fact, on a number of venture capital deals basis, Austin ranked 4th in Q1 2010.
Austin’s venture capital strength comes on the back of diversity from both a sector and stage of investment perspective. The below graphs break down the city’s venture capital statistics by sector and series of investment.
More discussion about venture capital geographic trends can be seen at the following:
SoCal venture capital trumps New York and Rivals Massachusetts
Venture Capital Getting More Geographically Diverse
Massachusetts’ Venture Capital Gaining Share on California
To see Austin’s venture capital deals and the venture capital investors funding promising young companies in Austin, logon to CB Insights.
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Jim Hillhouse said,
The problem with this article is in how it presents the Austin VC data compared to other cities.
Treating individual towns in the Bay Area as separate entities is misleading. A deal in San Fran could be with a company in San Jose. The Bay Area is an eco-system and should be treated as a whole.
Doing so reveals a much different picture of Austin as a VC center when compared to the Bay Area and Silicon Valley. In fact, the totals line up as follows,
AREA DEALS AMOUNT AMOUNT/DEAL
Bay Area 107 $1,178M $11.00M
SiValley 44 $ 700M $15.91M
Austin 21 $ 144M $ 6.86M
This shows the real problem for our city–no matter how we cut it, we need more deals at higher investment rates for Austin’s tech community to thrive on the level of the Bay Area or Silicon Valley.
CB Insights said,
Jim – Thanks for the comment and for reading. We generally highlight the city rankings without any aggregation, i.e. Bay Area or Valley. The good news was that in the quarter, Austin fared well against other major tech hubs, i.e. Seattle and seems to maintain a solid presence amongst top cities.
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