The National Venture Capital Association (NVCA) retained Content First to produce a series of reports on the importance of the venture capital industry.
The National Venture Capital Industry Association (NVCA) released Venture Impact: The Economic Impact of Venture Capital Backed Companies to the U.S. Economy, in 2007. Global Insight compiled the data using a database of nearly 24,000 venture capital backed companies. Its findings included that the nation’s venture capital-backed companies employed about 10 million American workers, and that the total revenue of venture capital-finance firms made up 16.6 percent of the nation’s gross domestic product (GDP) and 9 percent of U.S. private sector employment. California, Texas, Pennsylvania, Massachusetts, and Georgia ranked as the top national jobs creatures measured by venture capital-backed companies headquartered in their states.
Selected Facts from Venture Impact 2004
- Venture capital-backed companies employed more than 10 million American workers
- Venture capital-backed companies generated $1.8 trillion in sales
- Venture capital-backed firms outperformed the national economy in overall sales growth
- California, Texas, Pennsylvania, Massachusetts, and Georgia were the top national job creators measured by venture capital-backed companies headquartered in their states
- Venture capital-backed companies employed almost 2.5 million people nationwide in 2003
NVCA released Venture Impact: The Economic Impact of the Venture Capital Industry on the U.S. Economy in 2003 to provide policymakers, the press, and the public with objective statistics on the importance of the venture capital industry to the U.S. economy and state economies. The data, based on a database compiled by DRI-WEFA, showed that venture-backed companies contributed more to the U.S. economy than average public companies when measured by sales, federal taxes, exports, and research and development expenditures.
Content First and the National Foundation for American Policy (NFAP) were commissioned by the National Venture Capital Association (NVCA) to develop a study on the economic impact of immigrants on the U.S. economy. Content First established a database of nearly 900 venture-backed companies that went public beginning in 1970. The founder(s) nativity for each company was examined to determine the number of foreign-born founders among these firms.
American-Made Key Findings
- Fully 25% of venture-backed public companies were started by one or more immigrant founders
- That figure rose to 40 percent In the tech sector, which included such well-known names as Google, Yahoo, Sun Microsystems, and eBay
- The combined market cap of these companies exceeded $500 billion, which standing alone would put it about 17th in world GDP
- More than 400,000 jobs were created worldwide by these companies
NVCA commissioned Content First to develop a study on the benefits of venture capital investment in the life sciences. Patient Capital: How Venture Capital Innovation Drives Revolutionary Medical Innovation was released in June 2007.
Patient Capital Key Findings
- The nation’s most innovative medical breakthroughs have been brought to market by billions of dollars of venture capital investment in life sciences companies
- Venture-backed life sciences companies include Boston Scientific, Amgen, Genentech, Genzyme, and Intuitive Surgical
- The impact of discoveries by venture capital-backed life sciences companies saves millions of lives, improves medical procedures, reduces health care costs, and provides overall economic benefits to the U.S. economy