Do you have to be based in San Francisco to raise venture capital?

Today, the venture capital investment has gone global and is now spreading to other countries such as India and China, but the most dominant metros still remain the US cities that combine density, big universities, and the great minds and tolerance which is needed to attract talent all over the world. The US is the most dominant country globally in terms of venture capital, and it accounts for nearly over 70%(68.8%) of the world’s total venture capital, followed by Asia in 2nd position roughly at 14.4%, and then Europe in 3rd. place at around 13.5%. When we rank the top 20 metros globally in venture capital, the US still occupies the first top 6 metros and has a total of 12 in the top 20, with San Francisco emerging as the top venture capital city in the US and the whole world at large. San Francisco has an estimated Venture Capital of about $6,471M which is around 15.4% of the share of the Global Venture Capital Investment. In the second place is San Jose which has an estimated venture capital investment of about $4,175 and this represents 9.9% in the share of the Global Venture Capital investment. Both 2 cities are in the US.

We have other cities such as Bangalore, Beijing, Mumbai, and Shanghai which have shown their ability of attracting venture investment and creating startup ecosystem, but their level is way far below that of San Francisco. This cities are still grappling with the inability of being able to attract world’s top talents.

Finally, I would like to say that you really don’t have to be in San Francisco to raise venture capital, but given the opportunity, then this is the best city where one can raise venture capital more easily.

Source:

A report from Martin Prosperity Institute, Rise of the Global Startup City,

https://www.theatlantic.com/technology/archive/2016/01/…venture-capital/429255/

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