Venture Capital Creates 7.6 Million Jobs Since 1970 - Study
Of DOW JONES NEWSWIRES
NEW YORK -(Dow Jones)- The billions of dollars of venture capital pumped into U.S. companies over the past three decades has created 7.6 million jobs and $1.3 trillion in revenue, according to a study by the National Venture Capital Association.
The study showed that, as of the end of 2000, 5.9% of the nation's jobs and 13.1% of the U.S. Gross Domestic Product were created by $273.3 billion of venture-capital created companies.
For every $36,000 of venture capital invested from 1970 through 2000, one job existed in 2000, the research conducted by DRI-WEFA shows.
The figures are up sharply from the preliminary results in May because the study not only included independent venture-backed companies but venture-backed companies that have been acquired.
"Given that venture capital was less than one percent of U.S. investment activity during most of the period studied, its impact is remarkable," said Joseph Kasputys, chairman of Global Insight, the parent company of DRI-WEFA.
Job and revenue creation among venture-backed companies was most frequent in the computer, consumer, and medical health sectors, followed by communications, industrial energy, electronics, and biotech, the NVCA said.
In terms of jobs created, California, long a hotbed for venture capital activity, led the way with 1.4 million jobs at venture-backed companies as of 2000. Texas, at 676,158 jobs, and Pennsylvania, at 424,652 jobs, rounded off the top three.
(This story was originally published by Dow Jones Newswires)
Copyright (c) 2001 Dow Jones & Company, Inc.
All Rights Reserved
Of DOW JONES NEWSWIRES
NEW YORK -(Dow Jones)- The billions of dollars of venture capital pumped into U.S. companies over the past three decades has created 7.6 million jobs and $1.3 trillion in revenue, according to a study by the National Venture Capital Association.
The study showed that, as of the end of 2000, 5.9% of the nation's jobs and 13.1% of the U.S. Gross Domestic Product were created by $273.3 billion of venture-capital created companies.
For every $36,000 of venture capital invested from 1970 through 2000, one job existed in 2000, the research conducted by DRI-WEFA shows.
The figures are up sharply from the preliminary results in May because the study not only included independent venture-backed companies but venture-backed companies that have been acquired.
"Given that venture capital was less than one percent of U.S. investment activity during most of the period studied, its impact is remarkable," said Joseph Kasputys, chairman of Global Insight, the parent company of DRI-WEFA.
Job and revenue creation among venture-backed companies was most frequent in the computer, consumer, and medical health sectors, followed by communications, industrial energy, electronics, and biotech, the NVCA said.
In terms of jobs created, California, long a hotbed for venture capital activity, led the way with 1.4 million jobs at venture-backed companies as of 2000. Texas, at 676,158 jobs, and Pennsylvania, at 424,652 jobs, rounded off the top three.
(This story was originally published by Dow Jones Newswires)
Copyright (c) 2001 Dow Jones & Company, Inc.
All Rights Reserved
