VCs Are Going, Going, Back, Back to Boston, Boston.
Any venture capitalist worth his preferred stock will get a hangdog look on his face when he remembers the one that got away, especially if “the one” was a chance to invest in Facebook. Now Bloomberg is reporting that the shame of turning down Zuck in 2004–sending him straight to Palo Alto’s all too willing arms–has jolted New England firms awake.
Despite Boston’s claim as the birthplace of venture capital, its share of U.S. VC investments dropped to 11 percent last year, down from 15 percent in 2003. And, as the numbers show, Boston’s loss has been New York’s gain. Seven years ago, New York’s share of the nation’s venture capital was half of Boston’s. But in Q1, venture investments around NYC totaled $580 million, representing 10 percent nationwide, compared to Boston’s 11 percent share with $639 million in deals.
Not to mention New York’s been logging some quality time on the Bolt Bus to raid Boston’s engineers.
So what are New England investors gonna do about it? According to Bloomberg, they’re circling the wagons and heading back to the city. Read More
