Venture capital spreads the wealth

0 Comments | USA TODAY, March, 2008 | by Edward Iwata

While fabled Silicon Valley still attracts the most venture capital in the USA, several other cities, states and regions boast the fastest growth rates for start-ups and venture dollars over the past decade.

The number of start-ups in New Mexico, Pittsburgh, Seattle, Los Angeles and the Washington, D.C., region has risen anywhere from 70% to 600% since 1997, according to data released today by PricewaterhouseCoopers, the National Venture Capital Association (NVCA) and Thomson Financial.

"Once a critical mass of companies is funded in a certain region, a new ecosystem develops," says NVCA President Mark Heesen.

Why the surge? Universities and companies across the nation increasingly are launching research for the energy, health care, media and...