Venture capital financing fuels innovation and entrepreneurial startup companies, giving rise to the great gales of creative destruction that create new industries and redefine existing ones. Yet, across the top industries in the United States, venture capital investment is highly concentrated — the top five industries alone receive $25 billion, more than three-quarters of total venture investment. It is also concentrated in a relatively small number of geographic clusters.
These are some of the key findings of Venture Capital’s Leading Industrial Clusters, a new Martin Prosperity Institute study by Richard Florida and Karen M. King. The report uses detailed data from Thomson Reuters to identify the leading metros and neighborhoods or zip codes where venture capital investment and startup activity is clustered across five leading industries.
