Venture capital funding in the Golden State hit a five quarter low in Q3 2010. Is California and its epicenter of innovation activity, Silicon Valley, losing their grip? It’s become a sport to speculate about the end of the venture capital asset class and in particular, become fun for the punditry to predict the demise of Silicon Valley and/or opine on where the next Silicon Valley is going to be.
So here’s some data for you so you can be the judge.
As can be seen above, funding in California has dropped nearly 25% on a year over year basis. When looking at the share of venture capital funding going to California, we see the quarter came in at 49% which is consistent with performance over the time period in question.
Does this five quarter venture capital performance for California portend a secular trend that sees Cali’s role as the innovation capital of the world slipping? Leave your thoughts in the comments or drop us a line. And remember, California is not just about Silicon Valley. Southern California sees more venture capital dollars than NY.
This report was created with data from CB Insights’ emerging technology insights platform, which offers clarity into emerging tech and new business strategies through tools like:
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