7.6 million jobs funded by venture capitalists

The Associated Press
Tuesday October 23, 2001

SAN FRANCISCO — Venture capitalists have helped launch U.S. companies that created 7.6 million jobs while generating $1.3 trillion in total revenue during past three decades, according to a report released Monday by the industry’s biggest trade group. 

The report, compiled by economic researchers DRI-WEFA for the National Venture Capital Association, estimated that employers created one job from every $36,000 of venture capital invested between 1970 and 2000.  

The study looked at independent companies that received early financing from venture capitalists, as well as venture-backed start-ups now owned by other firms. 

California, long considered fertile ground for venture capital, benefited most from the industry’s rise, the report said. Venture capitalists invested $108.8 billion in California start-ups. 

years covered by the study, creating 1.4 million jobs and spawning $270.6 billion in total revenue. 

Massachusetts start-ups received the second biggest sum of money — $26 billion — and parlayed the investments into 318,433 jobs and total revenue of $48.4 billion. Texas companies did more with less venture capital, turning investments of $17.2 billion into 676,158 jobs and total revenue of $158.2 billion, the study reported. 

The report, which expanded on preliminary figures released in May, highlighted an industry that is wrapping up the worst year in its history