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VC Concentration

Venture capital investments in the United States remain heavily concentrated in California, New York, and Massachusetts, which together account for 85% of total VC assets under management. Scott Galloway highlights that while the US attracted 51% of global VC investment dollars in 2020, this is a decline from 83% in 2004 1. Despite this concentration, some states like New Mexico, Kansas, and Kentucky have shown significant year-over-year increases in VC assets.

Just one Silicon Valley VC, Andreessen Horowitz, has 17 billion under management.

--- Scott Galloway

This underscores the dominance of established tech hubs, although emerging regions are beginning to gain traction 1.

   

Emerging Hubs

Emerging tech hubs are on the rise, with tier two cities like Austin and St. Louis poised for growth due to their strong university presence. Scott Galloway predicts that these cities will attract talent and investment, leading to significant tech developments 2. The pandemic has increased mobility, allowing people to work from anywhere, which benefits these emerging hubs.

The tier two cities with world-class universities are going to be the ones that pick up the slack here.

--- Scott Galloway

Additionally, cities like Miami are experiencing a tech boom, driven by tax advantages and a high quality of life, although sustainability remains a concern 3.