As the most comprehensive resource available for those involved in technology-based economic development, SSTI offers the services that are needed to help build tech-based economies. Learn more about membership...
NVCA Looks at Venture Capital's Economic Impact
U.S. companies originally backed by venture capital created 4.3 million new jobs last year according to a new economic impact study released this week by the National Venture Capital Association (NVCA). Those companies generated $736 billion in revenues in the year 2000 and, according to the study, venture capital-backed businesses represented 3.3% of the nation's total jobs and 7.4% of Gross Domestic Product in 2000.
Regionally, the Southeast experienced the greatest job creation with 1 million jobs, followed by California. The consumer industry realized the largest number of jobs created as a result of venture-backed companies at more than 1.1 million in 2000, followed by the computer and medical/health industries. California saw the most venture capital-created revenues with $179 billion in 2000, followed by the Southeast and Southwest. The most significant revenue impact occurred in the computer industry with $204 billion in revenues generated in 2000, followed by the consumer and medical/health industries.
Regional statistics are provided below:
Jobs Created
2000 Revenues
(Billions $)
Southeast (AL, FL, GA, KT, MI, NC, SC, TN) 1,041,495 146.26 California 978,877 178.99 Midwest (IA, IL, IN, KS, MN, MI, MO, ND, NE, OH, SD, WI) 571,379 85.82 Southwest (AK, AZ, LA, NM, NV, OK, TX) 510,187 128.46 Northeast (CT, MA, ME, NH, NJ, RI, VT) 460,058 63.43 Mid-Atlantic (DC, DE, MD, PA, VA, WV) 231,128 32.29 New York 220,543 43.42 Northwest (AK, HI, OR, WA) 174,884 32.38 Rocky Mountains (CO, ID, MT, UT, WY) 94,581 24.88 TOTAL 4,283,132 735.93
The study, the first of its kind, was commissioned by the NVCA and released in New York City at its annual meeting. The companies in the analysis did not include those that were acquired and absorbed into other organizations, which would raise the totals by at least 30%, to 5.6 million jobs and $956.8 billion in revenue, NVCA estimates.
More information can be found at: http://www.nvca.com/