Silicon Valley is dead? Ventures are not in dollars

Most of Silicon Valley Silicon is no longer a valuable resource for creating computer chips, or even technological talent, in software products. Instead, it is the capital, which has accumulated in the region while the founder of today’s startup was in Diaper. Home now in nearby San Francisco More billionaires Per capita more than any other city in the world এবং and many have invested their resources directly in the startup ecosystem. Put another way: Silicon Valley is the technology capital of the technology.

Recently, some investors have talked big about bringing their cash elsewhere. Peter Thiel announced in February that he was transferring his founding funds to Miami; Joe Lonsdale took his entrepreneurial firm, 8 VC, to Austin. The bay is dead, they say. If money is the talk, it offers otherwise.

Venture capital was a record year in 2020, and the lion’s share of investments remained in California. More than a dollar has landed, according to the latest Pitchbook data. This amount is more than 30 times the investment in the next three cities – New York, Boston and Los Angeles – combined and in cities like Austin.

These new numbers tell an old story about venture capital. Pitchbook analyst Kyle Stanford said, “In our data set, it has never been centralized in the Bay Area. This winter, Stanford sought to qualify for the announcement that Silicon Valley was declining due to rumors of technology escapism in California politics and the high cost of living. He Found That is, between 2015 and 2020, 40 percent of VC dollars went to Bay-Area-based companies. And while other cities have seen more dollars pour in in recent times, it has yet to do much to unsettle Silicon Valley as the regional king.

In 2021, California startups continue to raise the largest investment ever. The first 25 stages of the Q1 data set in Pitchbook were completed in 12 states. Half of the top 10 were in California. And the size of these deals is getting bigger day by day. In the first few months of 2021, the “mega-round” was more than তিন 100 million, three times more than in the same quarter last year. Michigan-based Plymouth-based auto maker Rivian raised সম্প 2.65 billion in Series F, bringing the assets of a handful of companies to new areas – many of the big rounds California-based companies had for property-technology startups. Picasso And enterprise software maker Databrix, both headquartered in San Francisco, raised more than $ 1 billion in the first quarter of each year. Robinhood, headquartered in Menlo Park, has raised a surprise round of $ 3.4 billion.

Larger departures are concentrated in California. The top three exits in the first quarter of 2021 – Roblax, Tua Smart and Afmar All – were all based in Silicon Valley or San Francisco, with a net worth of over ৩ 3 billion. In the last three years, only 20 companies have completed the 1 1 billion exit outside of the four largest startup ecosystems.

Silicon Valley doesn’t have a complete stranglehold. Smaller rounds of VC funding are setting foot in new cities at even greater rates. Investors funded about 1,500 angel and seed rounds in the first quarter of 2021 – the largest quarter on record since Pitchbook 200 began tracking in 2006. The Bay Area received 14.5 percent of this round, which still makes it a regional leader by a small margin compared to other types of investment. Some cities, such as Minneapolis, recorded more first-quarter financing in the previous quarter than ever before. Both Denver and Chicago have shown huge growth year after year in the total number of investments, indicating a growing interest in these startup ecosystems.

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