Wednesday, September 16, 2009
NVCA: Venture Capital Spurs Jobs, GDP
The National Venture Capital Association today released a new report detailing the impact of venture capital on the U.S. Economy. The report, compiled for the NVCA by IHS Global Insight, found that venture backed companies accounted for 11 percent of private company employment in 2008, or 12.1 million jobs out of 115 million jobs in the private sector. The report also found that venture-backed companies had $2.9 trillion in revenue in 2008, or roughly one-fifth of the country's gross domestic product. The report tallies up near $200 billion in venture capital invested in California since 1970, with $29.2 billion invested in LA/Orange County, and $16.3M in San Diego. The release of the report comes as opposition and concern builds in the venture capital community over plans to include the industry as part of a larger effort to regulate hedge funds and other investors more closely.