Has the Recession Changed the Geography of Venture Capital?

According to the State Science and Technology Institute, that's what a new report by PriceWaterhouseCoopers suggests:

Last quarter, California's share of venture investment fell to 41 percent, the state's lowest share since 2001. . . At the same time, a few of the regions tracked by the Moneytree Survey are showing signs of recovery. The Philadelphia metropolitan area experienced a five-fold increase in venture investment dollars over the first quarter. The region was home to $161.9 million in venture investment and 22 deals, up from $31.2 million in 13 deals in Q1 2009. Though the average deal size jumped from $2.4 million to $3.36 million in the second quarter, the rise in investment was not simply due to a few larger investments since deal volume increased by 70 percent. In Colorado, investment dollars rose by 158 percent although the number of deals was slightly down. Venture dollars rose from $81.8 million in the first quarter to $211.1 million, even surpassing the pre-crisis investment level of Q2 2008. Colorado's number of deals, however, fell from 18 to 16. For both Philadelphia and Colorado, the increase represents an increase in their share of total national venture investment.

You can check out the MoneyTree report here.

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