2014 Biggest Venture Capital Year Since 2000
January 28th, 2015 by Rebecca Norman
Venture capital is a potential funding source for innovative small businesses as their products and services become more commercial-ready. According to a report from the National Venture Capital Association and PricewaterhouseCoopers, U.S. venture capital investment hit $48.3 billion in 2014, its highest level since 2000.
Also interesting to note is that the investments were dispersed throughout the country, with 160 metros receiving a portion of venture capital.
During the recession of 2009, the venture capital industry was at its lowest point since the 1990s, as reported by the NVCA/PwC. Then the industry grew and reached a steady state of around $29 million (in 4,000 deals) from 2011-2013.
In 2014, the industry spiked and made greater investments in software and Internet-specific industries. A rise in megadeals, or those exceeding $100 million, also occurred in 2014. In fact, two deals exceeded $1 billion, a record high in the history of VC investment, according to PwC.
The State Science and Technology Institute prepared a table showing venture capital data by dollars and deals in each state. Although California continues to lead the country in both areas, 13 other states more than doubled their investment level from 2013 to 2014.