Snapshots

The San Francisco Bay Area accounted for 44 percent of total venture capital spending in 2019

According to PwC’s 4th quarter report, San Francisco Bay Area remained the top location in Venture Capital (VC) spending in 2019, accounting for approximately 44 percent of U.S. spending or approximately 22 percent of global spending.

January 28, 2020
  • VC funding overall in 2019 reached $108 billion in the United States, down from a near record high of $118 billion in 2018 (the record year was 2000 at $119 billion). The Bay Area accounted for 44 percent of total VC spending
  • Despite the reduction in spending, Venture Capital firms raised $983 billion in 2019, up from $544 billion the previous year.
  • Increased emphasis among investors has been placed on exits and gross margin, rather than simply increased market share and gross revenue. More moderate VC spending combined with increased scrutiny of start-ups will likely reduce major capital expenditures of funded companies. As a result, expect more demand for flexible office space that does not require major capital investments as companies focus on gross margin.   

 

Source: PwC  MoneyTree Report, Q4 2019, JLL Research