Venture capital has long powered new and innovative startup companies. For most of its history, venture capital investment has flowed to startups in suburban office parks. However, our research finds that venture capital investment and startup activity is experiencing a considerable reorientation toward urban areas.
This is just one of the key findings of Venture Capital Goes Urban, a new Martin Prosperity Institute study by Richard Florida and Karen M. King. The report uses detailed data from Thomson Reuters to identify which venture capital investments flow to urban and suburban neighborhoods. We further explore the location of venture capital investment and startup activity by the way people commute to work — looking at the share of workers who walk, bike, or use transit compared to those who drive their own cars to work.
