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Venture Capital Investment in California and New York as of September 2012

by Jonathan Parker

  • 21 Sep 2012
  • PE

Traditionally, California has been a hub for innovation and consequently venture capital investment, with some of the world’s largest technology companies calling the state their home. Although companies based in California consistently receive the highest number and aggregate value of venture capital financings year on year, other states in the US have begun to see increasing amounts of investment.

In particular, venture capital investment in New York has grown at an impressive rate. The number of investments in companies based in California in 2010 was around 11% higher than the number completed in 2009. Across the same period, investments in New York-based companies grew by 42%. The number of investments in California-based companies in 2011 was up by 4%, but again the increase in investments in New York-based companies was far higher, at 17%.

The increase in the number of venture capital deals in New York is also clear when viewed as a proportion of the number completed in California. In 2009, the number of deals in New York was equivalent to 17% of the number completed in California. This proportion rose to 22% in 2010 and has risen steadily since, with the number of deals in New York so far this year equal to a quarter of the number completed in California.

New York has also outpaced California in terms of the aggregate value of deals. From 2009 to 2010, the aggregate value of venture capital investments in New York increased by 37% compared to a 24% increase in California. Again, from 2010 to 2011, the aggregate value of investments increased by 62% in New York, compared to 42% in California.

A number of deals have recently been completed in both California and New York. Virident Systems, based in Milpitas, California, recently received $26mn in Series D funding from Mitsui Global Investments, Globespan Capital Partners, Sequoia Capital, and Artiman Ventures. Sulia, based in New York, NY, has just closed $1.5mn of Series A funding from FirstMark Capital, RSL Venture Partners, IA Ventures, and Village Ventures.

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