Monday, July 23, 2007

VC Money -- More of It Is Going South to the LA Region

The Bay Area continues to lead venture-backed investments nationwide according to a new report by Ernst & Young, but the Los Angeles has narrowed its Northern cousin's lead as a result of the convergence of media and technology (so called "digital media").

In the second quarter, Bay Area companies pulled in $262 million of VC funding compared to $167 million raised by companies in the Greater LA region (which includes Los Angeles, Ventura, and Santa Barbara counties). Overall, VC firms invested $7.4 billion nationwide in the second quarter (up 8% from the year before) as a result of 717 individual deals (also up 8% from the year before and marking the highest quarterly deal volume since 2001). According to the report, Southern California took over the second position in overall venture funding from the New England region in 2006.