Why VCs Prefer Silicon Valley Investments
When you’re looking for investors, where you’re working can have an awful lot to do with your success. One reason: More tech companies in Silicon Valley pay off for VCs than in any other region of the country.
According to researcher CB Insights, tech companies in Silicon Valley made up 52 percent of the value from the 50 largest venture-backed exits so far this year. If you include Facebook’s IPO, the number rises to 86 percent.
While Silicon Valley startups represent the majority of deal action from IPOs to buyouts, New York accounts for just 10 percent, Massachusetts 8 percent, Southern California 6 percent and Illinois 4 percent.
Silicon Valley’s performance isn’t a flash in the pan. According to CB Insights, the Valley accounted for 48 percent of exits in 2011 and 42 percent of their valuation.