Ben Veghte


Boston, MA Breaks into Top Three, Overtaking San Jose, CA

WASHINGTON, DC – With the entrepreneurial ecosystem expanding from coast to coast, venture investors deployed capital to 3,662 companies located in 133 Metropolitan Statistical Areas (MSA) in 2015, according to the MoneyTree™ Report by PricewaterhouseCoopers LLP (PwC) and the National Venture Capital Association (NVCA), based on data from Thomson Reuters.

“Contrary to popular belief you don’t have to be an entrepreneur living in San Francisco, New York or Boston to receive venture capital funding.  There are pockets of innovation all across the United States, and as long as you have a groundbreaking idea with high-growth potential you are well positioned to attract venture capital funding to help grow your business,” said Bobby Franklin, President & CEO of NVCA.  “As more cities, states and municipalities dedicate greater resources to foster the growth of their local ecosystems, venture investors are taking notice and deploying capital across much larger areas of the country.  This not only helps the entrepreneurs themselves but local economies as well through job creation and sustained economic growth.”

Top MSAs for Venture Capital Investment by Number of Companies

Not surprisingly, the San Francisco-Oakland-Fremont, CA MSA continues to be the top MSA for venture capital investment, with 797 companies attracting $21.0 billion in 2015.  For the third year in a row, the New York-Northern New Jersey-Long Island, NY-NJ-PA MSA had the second largest number of companies receive venture backing with 416 startups attracting $7.0 billion.  Solidifying itself as a prime location for innovation and venture capital investment, the Boston-Cambridge-Quincy, MA-NH MSA broke into the top three with 348 companies receiving $5.6 billion.  Displaced by Boston out of the top three, the San Jose-Sunnyvale-Santa Clara, CA MSA had the fourth largest number of companies receive venture capital investment with 321 startups receiving $6.2 billion.  For the 16th year in a row, the Los Angeles-Long Beach-Santa, Ana, CA rounded out the top five destinations for venture capital investment with 240 companies receiving $4.5 billion in 2015.

Top MSAs for Ecosystem Growth since 2010

Measuring the compound annual growth rate (CAGR) of number of companies receiving venture capital funding since 2010, the Charlottesville, VA MSA has experienced the greatest growth of its ecosystem at 55.2 percent.  Nine companies in the Charlottesville, VA MSA received $27.7 million in venture funding in 2015 compared to one company receiving $250,000 in 2010.  Interestingly, the Charlottesville, VA MSA has also experienced the greatest rate of growth as measured by venture investment dollars with a 156.5 percent increase since 2010.  The Oklahoma City, OK MSA logged the second greatest rate of growth by number of companies receiving investment since 2010 with a 51.6 percent increase and eight companies receiving venture funding in 2015.  The MSA to record the third largest growth rate since 2010 is the Rochester, NY MSA which experienced a 43.1 percent increase with six companies receiving venture investment in 2015.  Rounding out the top five MSAs to experience the greatest rate of growth since 2010, the Chattanooga TN-GA MSA came in fourth with a 38 percent increase and Memphis, TN-AR-MS in fifth with a 34.5 percent increase.

MSA 2015

Click here to download venture investment by MSA data.

Please note a metropolitan statistical area (MSA) refers to a geographical region with a relatively high population density. MSAs are defined by the Office of Management and Budget (OMB) and used by the Census Bureau and other federal government agencies for statistical purposes.  Companies have been mapped to MSAs based on the zip code of their headquarter location.

About National Venture Capital Association

Venture capitalists are committed to funding America’s most innovative entrepreneurs, working closely with them to transform breakthrough ideas into emerging growth companies that drive U.S. job creation and economic growth. As the voice of the U.S. venture capital community, the National Venture Capital Association (NVCA) empowers its members and the entrepreneurs they fund by advocating for policies that encourage innovation and reward long-term investment. As the venture community’s preeminent trade association, the NVCA serves as the definitive resource for venture capital data and unites its over 300 member firms through a full range of professional services. For more information about the NVCA, please visit