Venture Capital Increase in Florida

Hi, I'm Bette Hochberger, CPA, CGMA, and today I want to discuss some recent statistics regarding venture capital. What is Venture Capital? According to Investopedia, "Venture capital (VC) is a form of private equity and a type of financing that investors provide to startup companies and small businesses that are believed to have long-term growth potential. Venture capital generally comes from well-off investors, investment banks, and any other financial institutions." On this page, we've discussed angel investors and venture capital before, so if you want to learn more, click here. What Happened? If you didn't know, venture capitalists historically tend to invest heavily in California, Massachusetts, and New York. But according to the latest statistics, all that has changed! Where did all that money go? You guessed it, The Sunshine State, and two other honorable mentions - Texas and North Carolina. According to Crunchbase.com, "The Sunshine State saw the biggest percentage increase of any state in venture capital investment between 2021 and last year." This is no surprise to me as I am heavily entrenched in the Miami Tech scene, but seeing these numbers really solidifies my stance on Miami Tech's staying power. A huge reason for this uptake is that Florida stayed open while the prior ring leaders (California, New York, and Massachusetts) remained more or less closed. We saw people moving to Florida left and right. So much so that we even started offering Florida Domicile packages to potential movers to reassure them that their old state won't come chasing after them for taxes. So, anyway, that is the news, what do you all think? Let me know in the comments, and as always, stay safe.