George Gaprindashvili June 11, 2015
If you look at the portfolios of most U.S.-based venture capital firms, you’ll find that the largest portion of their investments are made close to home. Take Atlas Venture, for example. The household-name VC firm has completed 63 deals since May 2014, according to PitchBook’s database. Of those investments, well over half (37) have included companies in the firm’s home state of Massachusetts. For California-based VCs, the percentage of in-state investments can be even greater. For instance, 79 of the 99 startups backed by Menlo Park-based Andreessen Horowitz during the same timeframe are headquartered in California. The advantages are rather obvious. VCs like investing close to home where they have a good feel for market conditions, a large network of resources, close proximity to Board meetings, etc.
Of course, most VC firms also make a significant portion of their investments out of state. California, the global hub of tech startups, is a clear investment source even for firms based on the East Coast. But where else are VCs investing when they venture away from home? We’ve selected some of the most active U.S. venture capital firms over the past year and mapped their out-of-state investments in an interactive data visualization (click here or on the image below).
Below the map, you can filter by individual investors to see a summary of all their out-of-state deals. To highlight specific investments within a given state, just click on the corresponding lines on the map. Some of the firms have offices outside of their HQ state. Investments made in states where those firms have additional offices were not considered “out of state”.
Note: Viewing on desktop is recommended for optimal quality.
Whether investing in state or out of state, the strategy of most VCs (at least in terms of industry focus) doesn’t seem to waver much. One exception from the investors included in the map above is Great Oaks Venture Capital. Since May 2014, the New York-based firm has backed about 53 U.S. companies. The primary industry focus of its out-of-state investments has differed significantly from those in state.
All of the data in this article was sourced using the PitchBook Platform. To start your free trial, click here.