March 22, 2007
Texas-based companies funded by venture capital investors have created more than 1 million jobs over a 35-year period and generated roughly $250 billion in revenue, highlighting the role that venture funding plays in the overall economy, according to a new report by the National Venture Capital Association.
According to the report:
- From 1970 through 2005, venture investors poured $22.9 billion into young and start-up companies around the state, the third-largest sum received by any state over that period.
- That down payment resulted in the creation of 1.09 million jobs and cumulative revenue from those Texas-based firms of $274 billion.
Not all the jobs were based in Texas; the report also tallied jobs created in other states by Texas companies. Nationally, venture investment over that time totaled $385 billion, resulting in just over 10 million jobs and cumulative revenue of $2.07 trillion.
Further, Texas is in some ways getting more bang for its venture investment buck than other big states. For example:
- Texas-based companies created one new job for every $21,026 they received from venture investors.
- Compare that performance with California, which received by far more venture money -- $161.4 billion -- over the period; but each new job in the state "cost" $70,630.
"This is money and investment that is laser-focused into creating jobs," said John Adler, a general partner with Silver Creek Ventures in Dallas. "When venture investors are successful in putting money into a company, by definition, we're creating jobs."
Source: Victor Godinez, "Venture pays," Dallas Morning News, March 21, 2007.
Browse more articles on Tax and Spending Issues