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Silicon Valley’s share of US VC funding falls to lowest level in more than a decade – FiratNews

Silicon Valley’s share of US VC funding falls to lowest level in more than a decade – TechCrunch

In 2014, greater than 40% of U.S. seed- and early-stage enterprise {dollars} went to Bay Space startups.

However that was a very long time in the past.

In recent times, Bay Space startups have accounted for a smaller proportion of U.S. VC funding, based on “Past Silicon Valley,” a brand new report co-produced by enterprise agency Revolution and PitchBook. Up to now in 2021, solely about 27% of U.S. VC {dollars} have gone to Bay Space startups. It’s been greater than 10 years since that proportion fell beneath 30%, the research mentioned, even supposing the nation is on observe to see file quantities of enterprise funding general this yr. We dug into the report and talked to Revolution CEO and Chairman Steve Case concerning the findings.

Screen Shot 2021 12 08 at 9.13.15 AM

Picture Credit: Revolution/PitchBook

Case is the founding father of the Revolution trio of funds (together with the Rise of the Relaxation Seed Fund), which focus solely on investing exterior of Silicon Valley. Since launching the platform in 2014, Case and his groups have invested in 194 firms throughout 89 cities.

Not solely is 2021 a file yr for {dollars} raised, it’s panning out to be a file yr for Bay Space- and NYC-based VCs who’re investing in startups exterior their areas. As lately as 2017, greater than 50% of early-stage Bay Space {dollars} have been obtained by Bay Space startups. At the moment, that proportion is 37%, based on the Revolution/PitchBook report.

In every of the previous two years, a minimum of $11 billion of Bay Space capital has been invested exterior the three main ecosystems. A decade in the past, that determine was beneath $3 billion.

“Once we take a look at the industries of the long run, and the businesses of the long run, they’re going to be dispersed across the nation and world wide and if all you’re doing is investing in your individual yard, you’re going to overlook out on all of the alternatives to spend money on among the iconic firms of the long run,” Case advised FiratNews.

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