Venture Capital Does Not Venture Into the Midwest
Case’s diagnosis of venture capital’s problem with geography is not an exaggeration, based on the most recent data from the National Venture Capital Association. According to the organization, about 60 percent of all venture capital investments in 2018 were afforded to people and companies on the west coast. New England and the Mid-Atlantic account for another quarter of venture capital dollars, meaning that 85 percent of venture capital’s big investments are concentrated on the coasts, completely bypassing most of the country. Only one-half of one percent of venture capital’s 2018 investments went to firms in the Midwest.
This chart shows the distribution of venture capital investments in 2018 by U.S. region.