U.S. Venture Capital Investment Spanned 160 Cities in 2014

Pete CodellaNews

Venture capitalists invested $48.3 billion into companies located in 160 metropolitan statistical areas (MSAs) in 2014, according to the MoneyTree™ Report by PricewaterhouseCoopers LLP (PwC) and the National Venture Capital Association (NVCA), based on data from Thomson Reuters. The geographic distribution of venture capital investment in 2014 spanned the highest number of MSAs of the past five years, and represented a 7.5 percent increase from 2013, when companies in 148 metro areas received venture capital investment.

“The venture community continues to invest in entrepreneurs founding innovative companies in regions across the U.S., deploying capital to more cities in 2014 than any year in the past five years,” said Bobby Franklin, President and CEO of NVCA. “Great ideas and great companies can be started almost anywhere and while historically concentrated, the venture capital ecosystem is able to move capital quickly and efficiently toward the greatest opportunities. The diverse geography of venture investment points to the enormous impact of entrepreneurs, students, incubators, investors and others who are working to build local ecosystems where high-growth companies can thrive, create jobs and shape the future our economy.”

Top Metro Areas for Venture Capital Investment Remain Consistent 

For the fifth consecutive year, San Francisco, San Jose, Boston and New York maintained rankings in the top four metro areas for venture capital investment. San Francisco maintained the top spot for venture capital investment; five of the 10 largest deals completed in 2014 were in the metro area.  For the first time, Los Angeles earned the fifth spot, moving up from sixth place in 2013 and replacing Washington, D.C. which dropped to ninth place.

Mega-Deals Push Three Metro Areas into Top 20 

A number of mega-deals, those which exceed $100 million dollars, pushed three metro areas into the list of the top 20 MSAs for venture capital activity. Fort Lauderdale, Florida leapt from #81 in 2013 up to #11 among all MSAs in 2014 as the result of an Early Stage deal exceeding $500 million. In Provo, Utah, an Expansion Stage deal and a Later Stage Deal, each exceeding $100 million, moved the metro area up to #16 from #29 in 2013. Houston, Texas jumped from #22 to #18 in 2014 as a result of an Expansion Stage mega-deal.

12 Metro Areas See Influx of Venture Capital Investment for First Time in Past Five Years

Companies located in Bryan-College Station, Texas; Bismarck, North Dakota; Terre Haute, Indiana; South Bend, Indiana; Elkhart-Goshen, Indiana; Bellingham, Washington; Johnson City-Kingsport-Bristol, Tennessee-Virginia; Lafayette, Louisiana; Newburgh, New York-Pennsylvania; Greenville, North Carolina; Springfield, Massachusetts; Janesville-Beloit, Wisconsin brought venture capital investment to those metro areas for the first time in the past five years.

Please note a metropolitan statistical area (MSA) refers to a geographical region with a relatively high population density. MSAs are defined by the Office of Management and Budget (OMB) and used by the Census Bureau and other federal government agencies for statistical purposes.

 

Investment Data by MSA for 2014

 

MSA Number of Deals Total Venture Capital Invested (USD Mil)
  1. San Francisco, CA
 876 15,740.60
  1. San Jose, CA
 417 6,883.22
  1. Boston, MA-NH
 371 4,443.43
  1. New York, NY
 395 4,218.20
  1. Los Angeles-Long Beach, CA
 171 2,053.90
  1. Seattle-Bellevue-Everett, WA
 108 1,204.83
  1. Oakland, CA
 97 1,185.50
  1. Chicago, IL
 94 1,064.91
  1. Washington, DC-MD-VA-WV
 121 857.18
  1. San Diego, CA
 99 805.08
  1. Fort Lauderdale, FL
 7 641.91
  1. Austin-San Marcos, TX
 114 620.58
  1. Orange County, CA
 83 546.53
  1. Atlanta, GA
 59 495.85
  1. Denver, CO
 43 480.27
  1. Provo-Orem, UT
 15 468.72
  1. Philadelphia, PA-NJ
 100 424.26
  1. Houston, TX
 23 397.46
  1. Minneapolis-St. Paul, MN-WI
 38 369.33
  1. Dallas, TX
 37 357.20
  1. Pittsburgh, PA
 79 337.76
  1. Salt Lake City-Ogden, UT
 28 332.27
  1. New Haven-Meriden, CT
 27 318.02
  1. Boulder-Longmont, CO
 39 298.81
  1. Raleigh-Durham-Chapel Hill, NC
 42 280.78
  1. Phoenix, AZ
 28 243.06
  1. Portland-Vancouver, OR-WA
 27 168.95
  1. Baltimore, MD
 47 164.78
  1. Newark, NJ
 13 145.19
  1. Lowell, MA-NH
 13 139.94
  1. Cincinnati, OH-KY-IN
 37 137.03
  1. Santa Barbara-Santa Maria-Lompoc, CA
 17 135.03
  1. St. Louis, MO-IL
 41 124.89
  1. Providence-Fall River-Warwick, RI-MA
 15 124.09
  1. Santa Rosa, CA
 11 123.23
  1. Nashville, TN
 48 117.91
  1. San Antonio, TX
 9 109.63
  1. Detroit, MI
 18 106.05
  1. Middlesex-Somerset-Hunterdon, NJ
 10 101.71
  1. Orlando, FL
 11 100.91
  1. Unknown
 44 100.86
  1. Cleveland-Lorain-Elyria, OH
 17 95.21
  1. Kansas City, MO-KS
 13 91.44
  1. Danbury, CT
 2 88.00
  1. Stamford-Norwalk, CT
 14 80.02
  1. Ann Arbor, MI
 21 67.23
  1. Yolo, CA
 5 60.29
  1. Worcester, MA-CT
 6 59.20
  1. Bergen-Passaic, NJ
 7 57.45
  1. Sacramento, CA
 5 53.57
  1. San Luis Obispo-Atascadero-Paso Robles, CA
 5 53.25
  1. Madison, WI
 22 50.53
  1. Nashua, NH
 2 50.52
  1. Louisville, KY-IN
 5 46.01
  1. West Palm Beach-Boca Raton, FL
 7 45.44
  1. New Orleans, LA
 2 42.29
  1. Indianapolis, IN
 15 40.93
  1. Tampa-St. Petersburg-Clearwater, FL
 6 40.65
  1. Vallejo-Fairfield-Napa, CA
 6 39.00
  1. Greenville-Spartanburg-Anderson, SC
 1 38.84
  1. Las Vegas, NV-AZ
 5 37.72
  1. Omaha, NE-IA
 9 34.16
  1. Kalamazoo-Battle Creek, MI
 5 31.42
  1. Ventura, CA
 3 30.05
  1. Bremerton, WA
 1 30.00
  1. Portsmouth-Rochester, NH-ME
 3 28.93
  1. Bakersfield, CA
 2 27.98
  1. Hartford, CT
 8 26.14
  1. Manchester, NH
 3 24.91
  1. Brockton, MA
 2 24.64
  1. Rochester, NY
 12 22.98
  1. Charlottesville, VA
 10 20.60
  1. Richmond-Petersburg, VA
 8 19.03
  1. Charlotte-Gastonia-Rock Hill, NC-SC
 6 17.80
  1. Portland, ME
 6 17.06
  1. Wilmington-Newark, DE-MD
 9 16.87