Venture capital spreads the wealth

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...