Why the Bay Area is still central to the future of VC
February 26, 2021
In recent years, the US venture industry has grown tremendously outside of the Bay Area—a shift accelerated by the pandemic. As weeks of working from home turned into months, questions grew about whether the sky-high prices of Silicon Valley were worth it, especially as cities like Austin and Miami stepped up to lure startups, employees and investors.
But growth in emerging markets isn't a sign of the Bay Area's decline, PitchBook analysts write in our latest research note. Despite an increasing flow of capital to other aspiring tech hubs, the region remains as central to the future of VC as ever:
But growth in emerging markets isn't a sign of the Bay Area's decline, PitchBook analysts write in our latest research note. Despite an increasing flow of capital to other aspiring tech hubs, the region remains as central to the future of VC as ever:
- LPs strongly favor Bay Area fundraising, which has topped $151 billion since the start of 2016—more than the rest of the US combined.
- More than 40% of US VC deal value in the past five years has gone to Bay Area-based companies.
- Silicon Valley produces the largest cohort of entrepreneurs in the country.