By: Bree NguyenFaculty Mentor: Dr. Tayyeb Shabbir

Region 2010

Silicon Valley

$8,513,442,800 39.0%

Boston/New England

$2,537,238,000 11.6%

Southern California

$2,431,050,700 11.1%

Total $21,823,380,100

Source: Thomson Reuters/PricewaterhouseCoopers

2000 2010%

Change

Silicon Valley

32.2% 39.0% 21.1%

Boston/New

England11.4% 11.6% 2.13%

Southern California

8.6% 11.1% 29.9%

Source: Thomson Reuters/PricewaterhouseCoopers

Mason, Colin (University of Strathclyde, Scotland). “Venture Capital: A Geographical Perspective.” Handbook of Research on Venture Capital. 2009.

Horvath, Michael (Dartmouth University). “Imitating Silicon Valley: Regional Comparisons of Innovation Activity Based on Venture Capital Flows.” Building High-Tech Clusters. 2004.

Supply-side

◦ # of Venture Firms

◦ Venture Flows ($)

Demand-side

◦ University R&D

◦ Entrepreneurs

◦ Labor

◦ Policy

Southern California is experiencing growth

in Venture Capital flows similar to Silicon

Valley, but the nature of this growth is

different.

Source: socalTECH venture deal database

Includes:◦ Deal data across all stages of funding:

Early stage Growth Large Fund

Methodology:

◦ 1st round deals in a given year

◦ Identified stages of funding

◦ Normalized data by taking percentage of the total

◦ Recognized growth rate given percentage gains

2010 # Of Deals Average Deal Size

Silicon Valley 1204 $6.93m

Southern California

451 $4.87m

Source: socalTECH Venture Database

Seed/Early$0-1.5m

Expansion$1-10m

$10-50m $50m+

Silicon Valley 40.2% 41.9% 16.4% 1.5%

Southern California

43.0% 44.8% 11.8% 0.4%

Distribution of Venture Deals

Source: socalTECH Venture Database

Distribution of Venture Dollars

Source: socalTECH Venture Database

Growth of Early Stage Funding

Source: socalTECH Venture Database

Early stage funding in Southern California of total funding

Similar patterns to Silicon Valley

Unique makeup in Southern California

◦ Unique outlook using early stage/angel deal data

that is typically hard to aggregate

Early stage venture capital is active in

Southern California

The New Silicon Valley?

Isolate Early-stage Venture Capital growth

determinants

How does Early-stage growth affect future

growth?

Demand-Side determinants

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