Last week in a post I looked at the geographic distribution of #venturecapital over the longest period I could find–Jan. 1, 2006 through Dec. 31, 2020, using NVCA data.
Today, using the same 15-year period, I’m looking at deal activity (not $s) within the US, focusing on the top 5 most-active states.
2019 was a 15-year peak in deals within the US; and in 2020 activity fell by 10%–though still above long-term average and hardly surprising given the significant and unprecedented economic, political and social uncertainty nationally and globally.
Importantly, despite all the media frenzy about capital flight to low-tax, low-wage states–particularly Texas–deals fell 20% faster there than so-called beleaguered California and 48% faster than the national average.
Florida, which the biz media has repeatedly hyped as a new “hot spot” of tech #investment, wasn’t significant enough for me to include in the top 5. You wouldn’t even be able to see it on this chart if I did.
California, which as I showed last week has attracted 51% of the $1.066 trillion invested w/in the US over the last 15 years, accounted for 35% of deals–more than 3X 2nd-place New York, 5X more than 3rd-place Massachusetts and 7X more than Texas. Washington was the 5th most-active state.
Don’t believe the bullshit artists like Elon trying to panic California into lowering its tax rates so they can pocket even more government-subsidized billions. Elon and tech billionaires want to create a race to the bottom. Let Texas lower its labor and environmental standards even further if they want. But high talent states don’t have to.

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