VC in Louisville: What’s the Number?
How much venture capital went into Louisville-based companies during 2014? I’m not sure. But, listed below are several reported amounts.
According to this WSJ interactive map of Venture Capital Investment by State, Kentucky–the whole Commonwealth–received $23.1M in 2014.
The National Venture Capital Association reports in Investment Data by MSA for 2014 that the Louisville, KY-IN MSA ranked 54th out of 160 MSAs with five (5) deals receiving $46.01M.
According to the BioEnterprise Midwest Healthcare Growth Capital Report, Louisville had two (2) healthcare companies raise a total of $51M.
State Science & Technology Institute (SSTI) has a table Venture Capital Dollars by State, 2009-2014 which indicates Kentucky had thirteen (13) deals receiving $47.4M.
When I do my own check of Dow Jones VentureSource–throwing in Crestwood, KY–I come up with four (4) companies raising a total of $9.25M.
So what is the real number? I have no idea.
Two additional data points…
From the Kauffman Foundation in Six Myths About Venture Capital Offer Dose of Reality to Startups in Harvard Business Review article; “VC financing is the exception, not the norm, for startups. Historically, less than 1% of U.S. companies have raised capital from VCs.”
However, “University spin-offs that receive venture capital funding have a 20% to 26% higher likelihood of commercialization compared with spin-offs that do not,” according to Christopher S. Hayter in Harnessing University Entrepreneurship for Economic Growth.