The proliferation of startups in America can be attributed to the increasing amount of money invested by Venture capital funds. Venture capital investments have seen startups like Lyft, AirBnB and Snapchat soar in the American market. The success of these companies have made venture capital investment a premier way of acquiring capital for your company.
In 2018, America’s venture capital industry made about $136 billion in investment, in American cities.
The following data was gathered from the National Venture Capital Association’s database. Gathered by metropolitan areas and the cities were ranked by the number of venture capital deals made and the dollar amounts of the venture capital deals going from the highest to the lowest.
The top three cities – San Francisco, New York and Boston are technological hubs with big technology startups thriving and growing.
Here are the top 3 cities with venture capital funding from least to the most:
1. San Francisco: San Francisco has raised around $11.2 billion in capital in 2019. The Bay Area made 1,775 deals in 2019, making it to the top of the list. The Bay Area ranks number one because it has the Silicon Valley that attracts a lot of VC funding.
2. New York City: New York city has raised about $4.3 billion in capital in 2019. The New York metro area made about 940 deals for the year as the metro area expands with fewer startups that have scaled rapidly in the last 4 years.
3. Boston: The city of Boston raised about $2.8 billion in capital in 2019. The Boston metro area made about 538 deals for the year as the area’s thriving bio-tech industry still continues to attract VC firms.