Entrepreneurship is really a self-reinforcing cycle. If a region starts generating successful companies, it attracts more capital, which leads to more successful companies. That’s what happened in Silicon Valley, Boston, and New York.
Boston, MA (PRWEB) December 06, 2011
Last week, Boston venture capital firm OpenView Partners released its latest research report on geographical and sector trends for technology companies in the expansion stage. Over the past few years, research from Pricewaterhouse Coopers has indicated that three areas of the US – Boston, New York, and Silicon Valley – dominate the venture capital scene. The research conducted by OpenView Labs focused on identifying areas outside of the big three that have secured venture capital in the first half of 2011.
According to the team’s research Los Angeles, Northwest/Seattle, Midwest/Chicago, Texas, and D.C. Metro area are all on the verge of becoming hot spots for receiving venture capital. As young companies continue to secure funding away from the traditional hot spots, each of these areas has worked to carve their own niche in the investment landscape.
The report features commentary from venture capitalists including Howard Morgan of First Round Capital, Chris Girgenti of New World Ventures, Greg Gottesman of Madrona Venture Partners, and George Roberts of OpenView Partners.
“Recently a CEO told me he was turned down for capital because he company isn’t location in Silicon Valley. That story saddened me because OpenView would never make such a statement; we go to them, rather than telling a company to come to us,” said George Roberts.
The research revealed the following:
- 50 deals in the D.C Metro area totaling $189.3 million in investment
- 75 deals in the Midwest totaling $455.3 million in venture capital (all data current through Q2 201)
- Investments total $479.9 million in the software sector and $376.5 million in media and entertainment sector across the 5 areas analyzed in the study
Be sure to visit OpenView Partners for the full report.
About OpenView Venture Partners
OpenView Venture Partners is an expansion stage venture capital fund with a focus on high-growth software, Internet and technology-enabled companies. Through its staff of seasoned operating executives, who collectively bring several decades of technology and management experience to the firm, OpenView is able to help portfolio companies with quickly ramping up Product, Go-To-Market, and Organizational and Operational functions to best practice levels. Founded in 2006, the firm has a total of $240 million under management. OpenView Venture Partners is based in Boston and invests on a worldwide basis. OpenView recently released OpenView Labs, an idea site for senior managers at expansion stage technology companies. For more information, please visit OpenView Labs directly.