Thursday 17th Sep 2009
Market News
Venture capital boosts jobs and revenue
Source: Strategy Eye
Venture capital remains crucial to the US economy, with venture-backed companies outperforming the overall economy between 2006 and 2008, according to a study commissioned by the National Venture Capital Association. Jobs at venture-backed companies grew by 1.6%, compared to 0.2% in the rest of the private sector, while revenue increased by 5.2%, compared to 3.5%.
Venture-backed companies also account for 12.1m, or 11%, of jobs, and USD2.9 trillion, or nearly a fifth, of revenue generated in the private sector in 2008. The geographic area of Silicon Valley has raised more than USD150bn in capital since 1970, almost three times as much as the second largest area, New England, which raised USD55bn.
