Top 5 Sectors Attracting Most Venture Capital

Although billions of venture capital dollars in America are flowing into tech, other sectors are still getting a fair share of the pie.

According to a report release by Martin Prosperities, the top 5 industries received more than 75% of all venture investment – about $25 billion in total.

Software garners by far the most interest, accounting for 36.2% of VC in the nation. Biotech, as well as media and entertainment, come in next, attracting 5.7 billion and 3.2 billion, respectively.

Infographic: Which Industries Attract The Most Venture Capital | StatistaSource: Statista

What’s more, the report highlighted that “venture capital investment by industry is also concentrated in a relatively small number of geographic clusters.”

In other words, nearly half of all software VC investment comes from the Bay Area – San Francisco accoutns for over 25% while San Jose for 20%.  

Moreover, software investment is also concentrated “at the neighborhood or zip code level,” the report showed.

“The leading zip code, in Palo Alto (94301), attracts $750 million, more than 6 percent of venture investment in software,” they wrote.

Venture capital investment in the U.S. as a whole across industries comes mainly from key areas: the Bay Area, the Boston-New York-Washington, D.C. corridor.

 

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