This year has Venture Capital rocked, turning a hot early start to 2020 into a fear-riddled ice age in the early days of COVID-19. That ice quickly melted when venture capitalists discovered that the demand for software and other services that startups offered increased, pushing many young tech companies back into growth mode and pushing investors back into the check writing industry.
Boston was an example of this trend as caution about an early pandemic dissipated into quick dealmaking with the start of summer.
We have compiled new data to underline the trend and show that the third quarter in Boston looks very solid compared to its peers and that New England's share of US venture capital is higher over the three month period.
Let's dive into the data for our October look at Boston and its startup scene, then understand how a new cohort of founders emerges on the city's education network.
A strong third quarter, a strong 2020
The third quarter in Boston was strong, effectively matching New York City's fundraising during the three month period. At the beginning of the fourth quarter, the silver medal in America's startup ecosystems appears to be awarded based on what happened in the fourth quarter.
Boston could launch as the country's second largest venture capital-raising venue in 2021. Or New York City could get there on target. Let's check the numbers.
The Boston metropolitan area raised $ 4.34 billion in venture capital in the third quarter, according to PitchBook data shared with theinformationsuperhighway. New York City and its subway area managed $ 4.45 billion, an effective link, over the same period. Los Angeles and its own subway area managed just $ 3.90 billion.
In 2020, the numbers will fall in favor of Boston, and the city and vicinity will raise $ 12.83 billion in venture capital. New York City ranked second in the third quarter with venture capital of $ 12.30 billion. Los Angeles was a distant third at $ 8.66 billion in the third quarter.