Slideshow: The New England, New York Rivalry And The Cheapest Place To Do A Second Quarter Venture Deal

By now you know venture investors turned more active in the second quarter, with a substantial uptick in dollars flowing from their checkbooks to startups.

What you may not know is that New York was one of the cheapest places to do a deal in this ebullient period. And that New England didn’t waste time trying to re-cement its status against the behemoth New York has become. (New Enterprise Associates announced its New York office just this week.)

The average second quarter deal size in the Big Apple was a miserly $6.4 million, compared with $9.3 million in Silicon Valley, $10 million in the Los Angeles metro area and $9.3 million in New England, according to an analysis of MoneyTree data.

Not surprisingly, this was not rock bottom for the quarter. The most inexpensive locality among major investment areas was the Midwest, where the average deal required a check of just $4.6 million

Meanwhile, New England gained on its rival, just as its Red Sox maintain a narrow lead over the lackluster Yankees. New England’s share of second quarter investments rose to 14.7%, representing a 4-percentage-point gain in the past year. New York held an 8.3% share, up a smaller 1.7 percentage points.

For those of you keeping score, Silicon Valley’s share of investment dollars fell to 39.5% from 43.8% a year ago. Caution is needed, however, when examining these quarterly fluctuations. Silicon Valley accounted for 41.2% in the first quarter.

What follows is a slideshow of the top 11 geographical areas with their second quarter investment totals, deal volume, share of total investments and average deal size.

Before we start, however, let me remind you that during the quarter, venture investors put $7.5 billion into 966 deals, a dollar increase of 5% from a year ago and 19% from the first quarter of 2011. The increase pushed investments to a 3 year high, according to the MoneyTree Report, which is compiled by PricewaterhouseCoopers, the National Venture Capital Association and Thomson Reuters, publisher of this blog.


[slide title=”No. 11: San Diego”]

Investments: $198 million

Deal Total: 29

Percent Of Quarterly Dollars: 2.6%

Average Deal Size: $6.8 million

[slide title=”No. 10: Colorado”]

Investments: $204 million

Deal Total: 21

Percent Of Quarterly Dollars: 2.7%

Average Deal Size: $9.7 million

[slide title=”No. 9: The Southwest”]

Investments: $210 million

Deal Total: 14

Percent Of Quarterly Dollars: 2.8%

Average Deal Size: $15 million

[slide title=”No. 8: Texas”]

Investments: $248 million

Deal Total: 38

Percent Of Quarterly Dollars: 3.3%

Average Deal Size: $6.5 million

[slide title=”No. 7: The Southeast”]

Investments: $293 million

Deal Total: 45

Percent Of Quarterly Dollars: 3.9%

Average Deal Size: $6.5 million

[slide title=”No. 6: DC Metro Area”]

Investments: $304 million

Deal Total: 44

Percent Of Quarterly Dollars: 4%

Average Deal Size: $6.9 million

[slide title=”No. 5: The Midwest”]

Investments: $344 million

Deal Total: 75

Percent Of Quarterly Dollars: 4.6%

Average Deal Size: $4.6 million

[slide title=”No. 4: Los Angeles/Orange County”]

Investments: $542 million

Deal Total: 54

Percent Of Quarterly Dollars: 7.2%

Average Deal Size: $10 million

[slide title=”No. 3: New York Metro”]

Investments: $624 million

Deal Total: 98

Percent Of Quarterly Dollars: 8.3%

Average Deal Size: $6.4 million

[slide title=”No. 2: New England”]

Investments: 1,108 million

Deal Total: 119

Percent Of Quarterly Dollars: 14.7%

Average Deal Size: $9.3 million

[slide title=”No. 1: Silicon Valley”]

Investments: $2,969 million

Deal Total: 319

Percent Of Quarterly Dollars: 39.5%

Average Deal Size: $9.3 million