Inclusive workforce development, downtown revitalization, and an influx of funds for venture capital are among the proposals in an economic development strategy unveiled by New Jersey Gov. Phil Murphy earlier this week. In an effort to focus on bottom-up development rather than a package of tax incentive programs favoring big businesses, the strategy seeks to build the nation’s “most diverse and inclusive innovation economy.”

The Angel Capital Association is piloting a new report on the factors that influence successful angel investing and the startups that angels support.  The initial Angel Funders Report covers 2017 data from 26 angel groups and provides new insights for one year of investments. Some of the report’s key findings include:

NVCA and PitchBook released Venture Monitor 3Q 2018 this week. The highlight data point in the report is that total U.S. venture capital investment in 2018 is on pace to break $100 billion for the year — and, in fact, to break $110 billion. At the same time, deal volume is on pace to be at the lowest level since 2012, with just 6,583 deals reported to date in 2018.

After considerable growth in the number of startups raising a first round of venture capital financing between 2009 and 2014, there has been a geographically widespread contraction, according to new research from Ian Hathaway at the Center of American Entrepreneurship, a D.C. based advocacy group. In America’s Rising Startup Communities, Hathaway explores the geography of first venture capital financing across U.S.

In last week’s Digest, SSTI looked at several macro venture capital (VC) trends, this week’s Useful Stats article focuses on regional trends as well as provides downloadable VC stats by state by quarter from Q1 of 2016 to Q2 of 2018. The data includes median VC deal size, VC deals, and VC dollars invested.

For the first time, the Chinese venture capital (VC) market has surpassed the U.S. VC market in total dollars invested in Q2 of 2018, according to Crunchbase. Driven by mega rounds and strong corporate VC, Chinese startups were able to raise more VC money in Q2’18 than their American counterparts. The strong Q2 for Chinese’s firms was driven by a very strong April.

Billion dollar acquisitions and IPOs of young startups capture a lot of media attention, but they are not the norm for the market by any means. Exits do not need to be measured in the billions of dollars to have significant economic development benefit for the states and regions that make sustained investments into startup innovation firms. An SSTI analysis of the Pitchbook and Crunchbase investment databases reveals a number of recent exits by venture development organizations (VDOs) that may provide funding to re-invest in even more innovation-based startups in their regions. Our analysis reveals that many of the acquired companies appear to be maintaining their local operations as they use the acquisition funds to scale. Several examples from the past quarter alone demonstrate the value of the VDO approach to supporting regional prosperity.

The number of companies receiving venture capital investments during the first quarter of 2017 dropped 24 percent compared to a year ago, according to the latest NVCA-Pitchbook Venture Capital Monitor, released Tuesday.  Venture capitalists also parted with 12 percent less money during the quarter, suggesting to the report’s authors that 2017 is on pace to compare to 2013 levels.

Once again, more than three-quarters of U.S. venture capital (VC) dollars went to companies in California, New York and Massachusetts in 2016, according to data from the PricewaterhouseCoopers (PwC)/CB Insights’ Moneytree Report Explorer. Approximately 53.3 percent of all VC capital went to California companies, down nearly 4.4 percent from the states peak in 2014 (57.7) and down 3.9 percent from 2015.

The University System of Maryland (USM) recently announced a $25 million fund to invest in USM-affiliated companies or startups created by students, faculty and recent graduates.  Companies already based in USM research parks or university incubators are also eligible for funding.

At the end of 2015, there were concerns that the Venture Capital (VC) industry had peaked and there would be a quick return to 2013 VC investment levels.

For the 10th consecutive quarter, the venture capital (VC) industry invested $10 billion in a single quarter after investing $15.3 billion in Q2 2016, according to the MoneyTree™ Report from PricewaterhouseCoopers LLP (PwC) and the National Venture Capital Association (NVCA).

Venture capital (VC) financing is a highly competitive process that backs only 1 percent to 2 percent of all startups that apply for funding, leaving many searching for financing alternatives.  In this two-part feature, SSTI examines the typical VC model, its advantages and limitations, and next week will highlight alternatives such as revenue-based financing, venture debt, crowdfunding and a new financing model for cleantech proposed

In last week’s Digest article – Alternatives to VC: Reconsidering the Startup Financing Paradigm – SSTI examined the conventional venture capital (VC) model as well as its advantages and limitations. In this installment, we will highlight alternatives such as revenue-based financing, venture debt, crowdfunding and a new financing model for cleantech proposed by Massachusetts Institute of Technology (MIT) researchers. We also take a look at the potential that these alternatives have for the field of tech-based economic development.

This week, we take a look at the top SSTI Weekly Digest stories from 2016 and give you an idea of what to look for in the coming months.

Startup failure is the rule, not the exception. However, much startup ”failure” includes businesses that made a workable product and grew — just not fast enough to attract venture capital. A hybrid venture capital-private equity approach is trying to identify these slower-growing businesses as part of an investment model that may provide an exit strategy for spurned startups throughout the country.

A spate of recent news challenges many common perceptions of venture capital. Academic researchers have identified critical shortcomings with widely used industry data. Major investors have revealed smaller than anticipated returns. An analysis of thousands of investments indicates fund success requires superstar deals of well more than 10x. These articles should drive new evaluations of public policy and programs to support early stage capital.

After an extremely strong venture capital market in 2015, the industry seems to show the signs of a decline driven by both cautious and fatigued investors. Three recent studies from Pitchbook and CB Insights indicate that there are several reasons why venture capital firms and other investors have been more cautious so far in 2016 including: mixed economic growth numbers; a volatile political climate; and, more security in private markets.

While the number of companies receiving venture capital (VC) backing continues to decline, the amount of money invested remains near record levels. As of Q3, the annual investment total for 2016 is approximately $56 billion invested across 6,000 companies.

Despite Brexit and political uncertainty in the U.S., stability is returning to the global VC market as investors shift from new unicorn chasing and a renewed interest in global initial private offerings (IPOs) by late-stage startups, according to a new report from CB Insights – Venture Pulse Q3 2016.

Over the five-year period from 2012 to 2017, as total venture capital investments more than doubled, growing from $41.2 billion to $84.0 billion, the number of deals increased by just 2.7 percent according to new data from the NVCA-Pitchbook Venture Capital Monitor. In 2017, more than half of all venture capital deals and three-quarters of all venture capital dollars went to companies in California, New York, and Massachusetts in 2017.

With the 2017 data in the books (see our analysis of MoneyTree and useful stats from the Venture Monitor), we can take a more informed look at the prospects for the industry in 2018.

Last week, SSTI looked at recently released data on venture capital dollars and deals by state, finding that total investment has skyrocketed but remains heavily concentrated in a few markets. This week we examine this data through two additional lenses: VC investment intensity and VC investment per technology startup.

With the 2017 data in the books (see our analysis of MoneyTree and useful stats from the Venture Monitor), SSTI continues our series (see part 1) highlighting trends to watch in 2018.

In this first part of a two-part series, SSTI will look at the common themes and trends of 2017 that were highlighted in the 2017 MoneyTree Report. In part two, SSTI will provide insights on some potential new trends observed last year that may continue to affect the investment of venture capital in 2018.