San Francisco Startups Inhale Nearly Half of California Venture Capital Financing

Chart - California VC: Dollar Volume Split Between San Francisco and the Rest of the State

Many everyone knows San Francisco is the biggest hub for startups. Which suggests it’s house to a massive amount of equity capital (VC) financing and start-ups defending a piece of it. However just how much VC loan enters into San Fran-based start-ups? And how does it compare to the rest of the Golden State?

That’s what today’s chart is everything about. According to Crunchbase, San Francisco is a dominant force in the state’s VC landscape So far this year, Bay Location companies have actually raised around 45% of all seed through pre-IPO financing for California business tracked in the Crunchbase database.

That’s right. I said 45% of all financing rounds– seed (the earliest possible stage) through pre-IPO (the most recent possible phase prior to going public). Here’s the breakdown of San Francisco deals by stage:

  • Late phase: 115 deals jointly valued at $101 billion
  • Early stage: 268 deals collectively valued at $5.14 billion
  • Seed: 423 deals valued at $403 million.

The typical round sizes for San Francisco seed deals and early stage offers are close to being in line with the rest of the state. But its share of unicorns– at least 57– is much greater.

San Francisco’s supremacy has actually been progressively growing over the past years, with a minor dip from 2016 to2018 Though other cities have begun acquiring popularity amongst business owners, San Francisco continues to top the list.

So what does this mean for start-up financiers? It implies you need to continue enjoying start-ups based in San Francisco and the Bay Location. The strong VC network within Silicon Valley gives its startups an upper hand on those outside of the Bay Area.

In truth, Early Investing Co-Founder Andy Gordon and Elder Managing Editor Vin Narayanan will remain in San Francisco today to go to TechCrunch Disrupt, a significant startup conference anticipated to draw around 10,000 participants. And they’ll be on the lookout for promising start-up investments to recommend to our First Phase Investor members.

That doesn’t mean San Francisco is the only city to produce high-quality startups. As Andy discussed in a current Mailbag, lots of opportunities emerge outside of Silicon Valley. But for now, San Francisco is ahead of the pack. And it’s demolishing a ton of VC funding.

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