Richard Florida is a co-founder and editor at large of CityLab and a senior editor at The Atlantic. He is a university professor in the University of Toronto’s School of Cities and Rotman School of Management, and a distinguished fellow at New York University’s Schack Institute of Real Estate and visiting fellow at Florida International University.
New data tracks the geography of technology investment.
The geography of high-tech startups and venture capital appears to be changing, according to new data from the National Venture Capital Association reported yesterday in USA Today. The data charts the total number of high-tech startups, the number receiving venture capital investment and the dollar value of that investment for the ten largest high-tech regions in 2011.
San Francisco, which includes Silicon Valley, remains the nation's leading high-tech venture capital center with 3,442 total start-ups and $11.8 billion in venture-capital investment going to 430 companies.
New York is next in start-ups with 1,844, though it lags Boston slightly in VC investment with $2.7 billion compared to $2.8 billion for Boston. New York's rise is a recent occurrence: Though it has long been a source of venture funds, until recently it was a relatively minor player in high-tech start-ups. Its recent, rapid rise as a high-tech center appears to be powered both by the size and diversity of its industries and markets and also by the growing preference of younger techies for more urban locations.
L.A. is fourth with 1,507 total start-ups and $2.0 billion in VC investment to 129 companies. Washington, D.C., takes fifth with 261 total start-ups and nearly $1 billion in venture capital investment.
Taken as a whole, the Bos-Wash corridor has become a serious player in high-tech venture capital with a total $6.5 billion in VC investment between New York, Boston and D.C., more than half that of the Bay Area.
San Diego, Chicago, Austin, Boulder-Denver, and Seattle round out the top ten.
The USA Today report notes that: "High rents in San Francisco and New York are making other parts of the country, where living expenses are lower, more attractive."
We will continue to track these evolving trends in the geography of high-tech venture capital.
Top image: Robert Galbraith / Reuters