A new report from Richard Florida and Karen King has discovered that venture capital investment in startup companies is becoming more and more concentrated in a small number of urban neighborhoods in America’s major cities, CityLab reports.
Venture capital is the high-risk high reward impetus of technology innovation. Companies like Apple, Facebook, and Uber were all given a significant boost from venture capital in their respective fledgling stages.
The report looks at micro-clusters of venture capital investment across America’s neighborhoods in the five leading high-tech industries of software, biotechnology, media and entertainment, medical devices and equipment, and information technology services.
As you may expect, either the San Jose metro or the San Francisco metro areas were home to the neighborhoods at the top of the lists in terms of total investment dollars for each category (a San Francisco neighborhood leads every category with the exception of software).
New York, Boston, Washington, D.C., and Seattle were other common cities featuring neighborhoods bringing in a ton of venture capital.
To view a full breakdown of the report including the top neighborhoods for each subcategory as well as the top neighborhoods for all high-tech industries, click the link below.