The Economic Impact of Venture Capital

VC-backed companies as a percentage of public U.S. companies founded since 1979:

  • Total Number: 43%
  • Total Market Capitalization: 57%
  • Total Employees: 38%
  • Research & Development: 82%

Percentage of Public Companies with VC Backing Each Year:

Since 1979, the percentage of public companies rose steadily until the year 2000, when the percent by number spiked to 25%, and the percent by market capitalization leveled out at around 17%. After a sharp drop in percent by number in the early 2000’s, that measurement has corrected and regained momentum. The percentage of market capitalization has remained steady.

The relative number of employees working for VC-backed vs non VC-backed public companies has increased steadily since 1979.

Some of the largest U.S. VC-backed companies of all time include 3Com, Tesla, Genentech, Bed, Bath & Beyond, Whole Foods, Apple, Starbucks and Costco.