Missouri's Business Climate Tool in Action: Total Venture Capital Investments
The Business Climate Comparison (BCC) online tool launched by the Missouri Economic Research and Information Center (MERIC) contains a wide-range of data comparing state population, education, and economic information.
The BCC tool uses Venture Capital (VC) Investments as one variable in measuring the business climate of Missouri. Venture capital is money provided by outside investors for financing new, growing or struggling businesses. Venture capital investments generally are high risk investments but offer the potential for above average returns. One advantage for businesses seeking such investments is to help a company reach the next level of growth and success. For instance, it can be used to assist in a business' goal to go public.
Venture capital general partners (also known as "venture capitalists") may be former chief executives at firms similar to those which the partnership funds. Investors in venture capital funds (limited partners) are typically large institutions with large amounts of available capital, such as state and private pension funds, university endowments, insurance companies, and pooled investment vehicles.
When compared to adjacent states, Missouri ranks only behind Illinois in venture capital dollars. When compared nationally and to states of similar population, Missouri ranks in the middle of the pack. The Show-Me state does, however, rank third nationally in the average amount per venture capital deal among those states with at least five deals.
Figures are based on the MoneyTree Survey, a quarterly study of venture capital investment activity in the U.S. The study is a staple of the financial community, entrepreneurs, government policymakers and the business press worldwide. It is the only industry-endorsed research of its kind.
More information about the MoneyTree Survey can be found online at: http://www.pwcmoneytree.com/moneytree/index.jsp
Leading Venture Capital States
- Overwhelmingly, California leads the nation with 1,241 Venture Capital Investments deals, totaling over $10.4 billion. The next closest state is Massachusetts with 339 deals totaling over $2.3 billion, followed by Texas, New York, New Jersey, Washington and Pennsylvania.
- Missouri ranks 21st nationwide in total venture capital dollars and 26th in number of venture capital investment deals in 2005.
Dollar figures represent total Venture Capital Investments
Figure in parentheses represents number of VC deals
- Among adjacent states, Missouri trails only Illinois in Venture Capital Investment dollars and trails Illinois and Tennessee in Venture Capital Investment deals.
States with Similar Population
- When comparing Missouri to states of similar population (Indiana, Tennessee, Arizona, Maryland, Wisconsin, Minnesota), the Show-Me state ranks in the middle for total investments, but at the top in average amount per deal with $9.8 million.
Largest Average Venture Capital
Amount per Deal
- Missouri ranks third nationally in average amount per deal ($9.8 million) for those states with at least five investment deals, trailing only Nevada ($14.9 million) and New Jersey ($10.6 million).
The BCC tool allows users to compare any number of states and the District of Columbia across 72 indicators that are sub-divided into eight easy-reference categories, including Population, Income, Education, Taxes, Cost of Living, Business Climate, Labor and Infrastructure.
The BCC tool can be found on the MERIC website at: http://www.missourieconomy.org/indicators/bcc/index.stm