WASHINGTON, D.C., Feb 05 (MARKET WIRE) --
The National Venture Capital Association (NVCA), the trade association
representing
more than 470 venture capital firms in the United States, is celebrating its
35th
year of advancing public policies conducive to the start-up economy. Since
1973,
NVCA has educated state and federal legislators, regulators, and academics on
thecontributions of venture-backed companies to the U.S. economy, innovation,
and
entrepreneurship.
"For 35 years we have been communicating the value and unique economic
efficiency
of this still relatively young industry. This decades-long dialogue serves not
just
our members, but all stakeholders in the venture capital ecosystem including
pension fund participants, foundations, job seekers, and frankly, every
American," said Mark Heesen, president, National Venture Capital Association.
"From
the creation of the biotechnology industry to the backing of household names
such as FedEx, Google, Intel, Genentech and Staples, venture financing has
proven to be an unparalleled, highly valuable contributor to the national
economy and to our daily lives. Venture investment represents a mere 0.2
percent of U.S. GDP but is responsible for 10.4 million American jobs and $2.3
trillion in sales. No other asset class can lay claim to these achievements.
We have a distinct story to tell and we look forward to the next 35 years of
discussion," Heesen added.
The NVCA was founded in 1973 in Chicago, Illinois. The original charter was
to
facilitate communications amongst venture capital professionals. The inaugural
Board of
Directors comprised many pillars of the venture capital industry including Peter
Brook, Ed Glassmeyer, Philip Greer, Ned Heizer, Charlie Lea, Dave
Morganthaler, Lionel Pincus, George Quist, Ken Rind and Paul Wythes, among
others. In 1977, the NVCA moved to Washington, D.C. to focus on public policy.
Since that time, NVCA has been advocating for legislation and regulation that
supports entrepreneurship and capital formation in the United States. Today,
the
NVCA membership comprises firms that account for more than 90 percent of the
total venture dollars under management.
NVCA will honor its 35th anniversary throughout the year with a variety of
programs and initiatives. In this spirit, the following 35 facts
exemplifyan asset class that is national in scope and unmatched in its impact:
Facts
1. The top ten states for VC investment in 2007 were 1) California, 2)
Massachusetts, 3) Texas, 4) Washington, 5) New York, 6) Pennsylvania, 7)
Maryland, 8) Florida 9) New Jersey, 10) North Carolina.
2. In the last 35 years, venture capitalists invested more than $441
billion
in over 57,000 companies in the United States.
3. Minnesota and Pennsylvania were ranked third and fourth respectively in
venture
capital investment in the medical device sector in 2007.
4. Washington and North Carolina were ranked fourth and fifth respectively
in
venture capital investment in the biotechnology sector in 2007.
5. Of the top 10 states for venture capital investment in 2007, Washington
had the highest five-year growth rate for investment dollars at 124.2
percent.
6. States where VC investment grew 100 percent or more in the last five
years include: Washington, Oregon, Kentucky, District of Columbia, New
Mexico, Indiana, Kansas, Mississippi, Vermont, and Iowa.
7. The San Diego metro region was the second largest metro region for life
sciences investing in 2007.
8. The top five area codes for VC investing in 2007 were 650, 408, 858,
617,
and 415.
9. More than 1400 seed and early stage companies received venture
capitalinvestment in 2007.
10. The average venture capital round in 2007 was $7.7 million.
11. The Clean Technology Sector, which includes alternative energy,
pollution
control and clean power supplies, has had the most venture capital investment
growth in the last five years.
12. The Biotechnology Sector received the most venture capital seed money
in
2007.
13. New York City had the second highest number of venture-backed
acquisitions in 2007
after San Jose.
14. One U.S. job was created for every $25,000 of venture capital
investedbetween 1970 and 2006.
15. Venture-backed companies we encounter everyday include FedEx,
Starbucks,
Home Depot, Staples, Outback Steakhouse, and Whole Foods.
16. Internet companies founded by venture capital include Google, eBay,
AOL,
Facebook, YouTube, Netscape, and Shutterfly.
17. Every one dollar of venture capital investment between 1970 and 2006
created $5.60 of U.S. revenues in 2006.
18. Venture-backed companies consistently grow faster than their
non-venture-backed counterparts.
19. One out of every three Americans has been positively impacted by a
venture-backed medical innovation.
20. Lifesaving medical innovations brought to market by venture capital
include
the pacemaker, MRI, ultrasound, angioplasty, and stent grafts.
21. Venture-backed medical innovations that improve quality of life include
glucose self-monitoring, Flumist, and spinal implants.
22. Venture capitalists invest in innovations that seek to eradicate
leading
causes of death in the United States including cancer, heart disease, stroke,
diabetes, spinal injuries and respiratory disease.
23. One quarter of venture-backed companies that are now public were
founded
by a foreign born national.
24. Venture capital investment in a company is typically five to 10 years
in
length -- often longer but rarely less.
25. Venture capital investment has consistently outperformed the S&P 500
and
the NASDAQ for the 10 and 20 year time horizons for decades.
26. There are fewer than 800 venture capital firms in the United States.
27. Venture capital accounts for just 0.2 percent of U.S. GDP but is
responsible for 10 percent of all U.S. jobs and 18 percent of U.S. revenues.
28. Since 1973, close to 3,000 venture-backed companies have gone public on
the
U.S. stock exchanges.
29. Since 1973, more than 4,000 venture-backed companies have been acquired
for their innovations and business models.
30. In 2007, U.S. venture capitalists invested $1.4 billion in China and
$1.0 billion in India.
31. The average number of company boards that venture capitalists sit on is
4.
32. One out of every five deals in 2007 had a corporate venture capital
investor.
33. The NVCA has a membership of more than 4,000 venture capitalists and
astaff of 12.
34. The majority of venture capitalists were once entrepreneurs, scientists
or
engineers themselves before they began investing.
35. Fifty-five new venture capital funds were raised in 2007.
The National Venture Capital Association (NVCA) represents more than 470
venture capital firms in the United States. Founded in 1973, the NVCA's mission
is to foster a greater understanding of the importance of venture capital to the
U.S. economy, and support entrepreneurial activity and innovation. According
to a 2007 Global Insight study, venture-backed companies accounted for 10.4
million jobs
and $2.3 trillion in revenue in the United States in 2006. The NVCA
represents the public policy interests of the venture capital community, strives
to
maintain high professional standards, provides reliable industry data, sponsors
professionaldevelopment, and facilitates interaction among its members. For more
information about the NVCA, please visit www.nvca.org.
Contact:
Emily Mendell
610-565-3904
Email Contact
Channa Luma
302-368-2345
Email Contact
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