A geography of the venture capital industry in the U.S

Thomas R. Leinbach; Carl Amrhein

doi:10.1111/j.0033-0124.1987.00146.x

A geography of the venture capital industry in the U.S

Thomas R. Leinbach, Carl Amrhein

Research output: Contribution to journal › Article › peer-review

40 Citations (Scopus)

Abstract

The venture capital industry in the U.S. has important implications for the growth of “high tech" industries and the viability of the small firm sector. Venture capital is provided largely through independent firms, quasi-public Small Business Investment Corporations (SBICs) and corporate subsidiaries. The regional distribution of VC firms has changed over time but New York, Massachusetts, and California account for one-half of the current firms. An analysis of regional flows of VC investment reveals that California, Massachusetts and Texas were the leading recipient states while the Plains region receives the least amount of capital. Given the concentrations of VC activity, a regional mismatch in the supply of and demand for such funds may exist. The investment needs of small firms, the employment impacts of the VC industry, and the matching of VC supply and demand are seen as useful research directions.

Original language	English
Pages (from-to)	146-158
Number of pages	13
Journal	Professional Geographer
Volume	39
Issue number	2
DOIs	https://doi.org/10.1111/j.0033-0124.1987.00146.x
Publication status	Published - May 1987
Externally published	Yes

Keywords

Entrepreneurs
High technology firms
Informal capital
Regional investment flows
Venture capital

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10.1111/j.0033-0124.1987.00146.x

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title = "A geography of the venture capital industry in the U.S",

abstract = "The venture capital industry in the U.S. has important implications for the growth of “high tech{"} industries and the viability of the small firm sector. Venture capital is provided largely through independent firms, quasi-public Small Business Investment Corporations (SBICs) and corporate subsidiaries. The regional distribution of VC firms has changed over time but New York, Massachusetts, and California account for one-half of the current firms. An analysis of regional flows of VC investment reveals that California, Massachusetts and Texas were the leading recipient states while the Plains region receives the least amount of capital. Given the concentrations of VC activity, a regional mismatch in the supply of and demand for such funds may exist. The investment needs of small firms, the employment impacts of the VC industry, and the matching of VC supply and demand are seen as useful research directions.",

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author = "Leinbach, {Thomas R.} and Carl Amrhein",

note = "Funding Information: * The authors wish to acknowledge the assistance of Donald W. Jones, Energy Division, Oak Ridge National Laboratory, Oak Ridge, TN in the development of the paper. In addition Professor Leinbach acknowledges a faculty award from the University of Kentucky Research Foundation in support of this research. The figure was drawn in the University of Kentucky, Department of Geography Cartographic Laboratory.",

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AU - Amrhein, Carl

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N2 - The venture capital industry in the U.S. has important implications for the growth of “high tech" industries and the viability of the small firm sector. Venture capital is provided largely through independent firms, quasi-public Small Business Investment Corporations (SBICs) and corporate subsidiaries. The regional distribution of VC firms has changed over time but New York, Massachusetts, and California account for one-half of the current firms. An analysis of regional flows of VC investment reveals that California, Massachusetts and Texas were the leading recipient states while the Plains region receives the least amount of capital. Given the concentrations of VC activity, a regional mismatch in the supply of and demand for such funds may exist. The investment needs of small firms, the employment impacts of the VC industry, and the matching of VC supply and demand are seen as useful research directions.

AB - The venture capital industry in the U.S. has important implications for the growth of “high tech" industries and the viability of the small firm sector. Venture capital is provided largely through independent firms, quasi-public Small Business Investment Corporations (SBICs) and corporate subsidiaries. The regional distribution of VC firms has changed over time but New York, Massachusetts, and California account for one-half of the current firms. An analysis of regional flows of VC investment reveals that California, Massachusetts and Texas were the leading recipient states while the Plains region receives the least amount of capital. Given the concentrations of VC activity, a regional mismatch in the supply of and demand for such funds may exist. The investment needs of small firms, the employment impacts of the VC industry, and the matching of VC supply and demand are seen as useful research directions.

KW - Entrepreneurs

KW - High technology firms

KW - Informal capital

KW - Regional investment flows

KW - Venture capital

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A geography of the venture capital industry in the U.S

Abstract

Keywords

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