Yesterday, the National Venture Capital Association published its fifth overview of the impact of companies backed by venture capital investment in the U.S. economy. The numbers are very interesting and provide data to support my theory that these high-growth startups are playing an increasingly important role in American business.
When I wrote Creative Capital, my book about the history of venture capital that was published last year, the 2007 NVCA survey that I cited found that as of the end of 2005 venture-backed companies accounted for 10 million jobs and nearly 17% of gross domestic product. The 2009 survey, which has data up to 2008, reports that venture-backed companies now account for 12 million jobs and 21% of GDP.
Another amazing chart to see in this report below shows how pervasive venture-backed companies are in the tech industry. In the software industry, for instance, 81% of the industry’s 1 million jobs originate from venture-backed startups.
“The numbers and percentages went up because the vc-backed companies grew at a faster clip than the overall economy,” says NVCA Vice President of Strategic Affairs & Public Outreach Emily Mendell. “There is something in the dna of these companies that sends them on a different, often better trajectory.”
- Spencer Ante also publishes the Creative Capital blog. Click here to see more.