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Science and Technology in the Economy
Quartiles | Findings | Description
Venture capital deals as share of high-technology business establishments: 2002
Venture capital deals as share of high-technology business establishments: 2002
![Venture Capital Deals as Share of High-Technology Business Establishments: 2002. Venture Capital Deals as Share of High-Technology Business Establishments: 2002.](state/map/alt/map_01_41.jpg)
Quartiles
Venture capital deals as share of high-technology business establishments: 2002*
1st Quartile (2.43%–0.57%) |
2nd Quartile (0.55%–0.30%) |
3rd Quartile (0.27%–0.14%) |
4th Quartile (0.13%–0.00%) |
---|---|---|---|
California | Arizona | Alabama | Alaska |
Colorado | Illinois | Arkansas | Hawaii |
Connecticut | Minnesota | Delaware | Idaho |
Georgia | Missouri | District of Columbia | Iowa |
Maryland | New Jersey | Florida | Kansas |
Massachusetts | New Mexico | Indiana | Kentucky |
New Hampshire | New York | Louisiana | Montana |
North Carolina | Ohio | Maine | Nevada |
Rhode Island | Oregon | Michigan | North Dakota |
Utah | Pennsylvania | Mississippi | Oklahoma |
Virginia | South Dakota | Nebraska | South Carolina |
Washington | Tennessee | Wisconsin | Wyoming |
West Virginia | Texas | ||
Vermont | |||
*States in alphabetical order, not data order.
SOURCES: PricewaterhouseCoopers, Venture Economics, and National Venture Capital Association, MoneyTree SurveyTM, special tabulations; and U.S. Census Bureau, 1989-2002 Business Information Tracking Series, special tabulations. See |
Findings
- The number of venture capital deals that involved U.S. companies fell from 8,000 to 3,000 between 2000 and 2002, a decline of more than 50%.
- In 2002, the distribution of venture capital among high-technology companies was uneven. Companies in only 10 states exceeded the national average of 0.67%.
- The high-technology companies located in Massachusetts were the most successful in accessing venture capital investments in 2002 with a 2.4% success rate. This was less than half the rate of Massachusetts companies that received such funding in 2000.
- In 2002, no venture capital deals were reported in four states.
Description
This indicator provides a measure of the extent to which high-technology companies in a state receive venture capital investments. The value of the indicator is calculated by dividing the number of venture capital deals by the number of companies operating in high-technology industries in that state. In most cases, a company will not receive more than one infusion of venture capital in a given year.
Venture capital investment can bring needed capital and management expertise that can help to grow a high-technology company. High values indicate that high-technology companies in a state are frequently using venture capital to facilitate their growth and development.