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Science and Technology in the Economy
Quartiles | Findings | Description
Venture capital disbursed per venture capital deal: 2004
Venture capital disbursed per venture capital deal: 2004
Quartiles
Venture capital disbursed per venture capital deal: 2004*
| 1st Quartile ($12.17–$7.39) |
2nd Quartile ($7.22–$5.08) |
3rd Quartile ($5.02–$2.72) |
4th Quartile ($2.15–$0.00) |
|---|---|---|---|
| Alabama | Colorado | Arkansas | Alaska |
| Arizona | Georgia | Florida | Delaware |
| California | Illinois | Hawaii | Idaho |
| Connecticut | Maine | Iowa | Louisiana |
| District of Columbia | Maryland | Kansas | Mississippi |
| Indiana | Michigan | Missouri | Montana |
| Kentucky | New Hampshire | Nevada | Nebraska |
| Massachusetts | New York | New Mexico | North Dakota |
| Minnesota | North Carolina | Ohio | South Dakota |
| New Jersey | Oklahoma | Oregon | Vermont |
| Rhode Island | Pennsylvania | South Carolina | West Virginia |
| Utah | Texas | Tennessee | Wyoming |
| Washington | Wisconsin | Virginia | |
| *States in alphabetical order, not data order.
SOURCES: PricewaterhouseCoopers, Venture Economics, and National Venture Capital Association, MoneyTree SurveyTM, special tabulations. See |
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Findings
- The size of the average venture capital investment in the United States rose over the past decade to slightly more than $7 million per deal in 2004. This represents an increase in investment size from $4 million per deal in 1995 and $5 million per deal in 1998 but a decline from $13 million per deal in 2000.
- The total number of venture capital deals has stabilized during the past few years at 3,049 in 2002 and 2,872 in 2004.
- The state distribution on this indicator was skewed in 2004; only 12 states and the District of Columbia were above the national average, and 2 states reported no venture capital investments.
- Several states with high values in 2004 did not show consistent values in earlier years; their 2004 performance resulted from a small number of later-stage investments.
Description
This indicator provides a measure of the average size of the venture capital investments being made in a state. The indicator is expressed as the total dollars of venture capital invested in millions divided by the number of companies receiving venture capital. The availability of venture capital may vary widely based on local business climate and entrepreneurial activity. The amount also will vary by stage of investment.
This indicator provides some measure of the magnitude of investment that developing companies in a specific state have attracted from venture capital sources. High values indicate a large average deal size.
Some states have relatively few venture capital deals taking place in a given year; thus, the value of this indicator may show large fluctuations on a year-to-year basis. This variation is further compounded by the large change in total venture capital investments that has occurred since 2000, making the use of a 3-year average of state investments misleading. Twenty-four states and the District of Columbia reported fewer than 10 venture capital deals in 2004. In such states, a single large or small venture capital investment can significantly affect the value of this indicator.
