Move Over, Silicon Valley: Utah Has Arrived

Monday, November 10, 2014

Move Over, Silicon Valley: Utah Has Arrived
When it comes to staggering sums of venture capital raised in 2014, there's Utah, and then there's everyone else.

(Article referenced from Inc.com)

By Ilan Mochari@IlanMochari

There's a reason HBO called its TV-series parody of startup culture Silicon Valley and not Utah. Silicon Valley, in every sense, is still where it's at, if the "it" in question is a preponderance of venture-capital-backed tech startups. Take, for example, these VC stats, courtesy of the Associated Press. The dollar amounts indicate VC funds invested in tech startups in the first nine months of 2014:

1. San Francisco, $9.32 billion, 506 deals
2. San Jose, California (Silicon Valley), $3.78 billion, 237 deals
3. New York City, $3.05 billion, 272 deals
4. Boston, $1.05 billion, 158 deals
5. Los Angeles-Long Beach, California (Silicon Beach), $768 million, 105 deals
6. Oakland, California, $510 million, 41 deals
7. Seattle-Bellevue-Everett, Washington, $471 million, 56 deals
8. Provo-Orem, Utah, $462 million, 9 deals
9. Washington, D.C., $456 million, 77 deals
10. Chicago, $402 million, 57 deals
11. Austin-San Marcos, Texas, $315 million, 58 deals
12. Salt Lake City-Ogden, Utah, $275 million, 16 deals

Who's number one? San Francisco. Who's number two? Silicon Valley. Surprise, surprise. But why did I bold the Utah regions? Mainly because in Utah, the dollar-per-deal averages were staggering. Look at it this way:

1. Provo-Orem, Utah, $51.3 million per deal average
2. San Francisco, $18.4 million per deal average
3. Salt Lake City-Ogden, Utah, $17.2 million per deal average 
4. San Jose, California (Silicon Valley), $15.9 million per deal average
5. Oakland, California, $12.4 million per deal average
6. New York City, $11.2 million per deal average
7. Seattle-Bellevue-Everett, Washington $8.4 million per deal average
8. Los Angeles-Long Beach, California (Silicon Beach), $7.3 million per deal average
9. Chicago, $7.1 million per deal average
10. Boston, $6.6 million per deal average
11. Washington, D.C., $5.9 million per deal average
12. Austin-San Marcos, Texas, $5.4 million per deal average

It paints a different picture, does it not? Mind you, paeans to Utah's entrepreneur-friendly culture are nothing new. Nor are the leadership lessons you can cull from Mormon principles. Yet the astronomical per-deal averages in Utah indicate something bolder is afoot. 

One entrepreneur in an ideal position to assess....click here for the rest of the story.

Category: VC