Sunday, August 9, 2015

Venture Capital at a 15 Year High, Bay Area Over 50% of Total Raised

The Q2 PWC Moneytree data is out, and at $17.5 billion raised, it was the biggest quarter for VC raised since Q4 2000.  But some metro areas still haven't seen a comeback in venture activity.   Metro DC companies raised over $1 billion in 2000's final quarter, but just one fifth of that this past quarter. The DC area had telecom back then, which receives just about nothing now, as well as AOL, which recently sold for a meager $4 billion, just 1/3rd the value of current day Bay Area startups like Pinterest and Dropbox.

The Bay Area domination grew, accounting for 52% raised, four times as much as #2 New York, and nearly an all-time record in total raised for that region.   In 2000, it picked up about 40% of venture-funds raised.  The top five metros, which included Boston, LA, and Seattle, accounted for 85% of all funding raised.  

The Northwest, which is virtually all Seattle companies, came in at just 3%.   This is out of proportion with that area's share of public companies, which include Microsoft, Amazon, Tableau, Zillow, F5 Networks, and Expedia.   Perhaps Seattle companies are somehow more successful at growing and staying independent?  


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