Amongst the top 30 most active venture capital firms of 2009-2010, we have already detailed that the internet sector attracted 26% of funding and 36% of deals from these firms and that seed deals represented almost 9% of these active firms deals. Now we turn our attention to where the internet sector investments these VCs are making are located.
Not surprisingly, California is the leader on deals and funding dollars taking over 60% of both. Interestingly, on a deals basis, NY’s Silicon Alley which is customarily the number 3 for overall VC funding behind Massachusetts jumps ahead in terms of internet investments by the top 30 most active venture firms. In Q2 2010, we saw NY was increasingly becoming a single sector town with 70%+ of funding and deals going to the net sector.
On a dollars basis, NY is number 2 as well followed by Illinois (Groupon affect) and then Massachusetts. While California remains solidly in control of where most active VCs invest, will New York remain the east coast destination of choice for the nation’s most active venture firms?