Middle Market Deals and how to buy, sell and raise capital from $5 to $500 million

The Federal Reserve Bank of Bost has recently published a report on venture capital that notes that two thirds of venture capital goes to just five regional areas: Silicon Valley, New England, metro New York, Texas, and Los Angeles/Orange County.

Among what the Central Bank calls secondary markets, Boulder, Colorado is ranked first for venture capital activity and Salt Lake City is ranked second.  Other cities ranked below Salt Lake include: Durham, North Carolina; Ann Arbor, Michigan; and Princeton, New Jersey.

The report notes:

The most valuable factor involves connections. First, connections between firms are important. These company-based links are exhibited by industry clusters, which are defined as “geographic concentrations
of interconnected companies, specialized suppliers, service providers, and associated institutions in particular field.” Secondary cities that are able to attract the most venture capital benefit from holding a high concentration of a particular cluster, i.e., a higher share of jobs in that cluster out of total jobs in the city compared with the share of jobs in that cluster for the United States as a whole.

Note:  Cities are ranked by number of private equity deals per city.