More than half of all venture capital dollars invested in small businesses and startups during the first three months of 2018 went straight into the state of California, according to a recent investment report from PwC and CB Insights suggesting the vast majority of business investment in the U.S. is concentrated in only a few states.
Venture capital investments climbed 4 percent during the first quarter to $21.1 billion, and more than $11.5 billion of that funding went to California-based businesses. Given the state’s thriving tech scene, large population and access to Silicon Valley and the San Francisco Bay Area, it is perhaps unsurprising to see the Golden State emerge from the first quarter with the country’s top spot.
Massachusetts narrowly edged out New York for second place, with the states attracting more than $2.6 billion and nearly $2.4 billion in venture capital investment, respectively. Texas placed fourth with $747 million – roughly one twenty-eighth of the money invested in California businesses.