Monday, March 26, 2007

Many jobs in Bay State are tied to venture capital, survey says - The Boston Globe

"Massachusetts, long the nation's second-largest magnet for venture capital investment, also ranks among the top five states in jobs and revenue generated by companies fueled by venture capital.

A new report by Global Insight, a Waltham research firm, shows that venture-backed companies overall accounted for 10 million jobs and $2.1 trillion in revenue nationally since 1970.

Massachusetts companies raising venture capital during the 35 years surveyed employed 639,881 workers in 2005, fourth in the nation, and reported 2005 revenue of $111.7 billion, fifth in the nation, the report said.

The study, issued by the National Venture Capital Association, seeks to measure the economic impact of venture-backed companies in the United States. It draws on data from quarterly MoneyTree surveys, sponsored by the PricewaterhouseCoopers accounting firm, along with the Thomson Financial research house and the venture trade group.

Venture-backed companies had a 4.1 percent annual growth rate in jobs and an 11.3 percent annual growth rate in sales between 2003 and 2005, compared to total private sector growth rates of 1.3 percent for jobs and 8.5 percent for sales, according to the report."

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