NEW YORK – Venture-funded companies accounted for nearly 4.3 million employees in the U.S. and generated revenues of $735.9 billion in 2000, a proportionately large infusion of human resources and capital given the size of the venture capital sector, according to a recently-released study.
The figures above represent 3.3% of U.S. payroll, 7.4% of U.S. gross domestic product and 4.2% of U.S. company-generated revenue, according to the WEFA Group, which conducted the study for the National Venture Capital Association. The numbers were released at last month’s NVCA Annual Meeting in New York.
Andrew Hodge, senior vice president of the WEFA Group, said venture capital produces results far above its small market share, representing just 2.1% of funds raised the last five years.
Some of the biggest names in corporate America, venture-backed, helped produce this job creation, Hodge said. Ten companies – led by Home Depot, Intel and Compaq – now produce more than $10 billion in sales.
Surprisingly, the Southeast, not California, accounted for the most venture-backed jobs by geographic region, with just over 1 million jobs. Southeast venture-backed strongholds include Home Depot, FedEx, Humana and Outback Steakhouse.
California had a total of 900,000 VC-backed positions, followed by the Northeast (including New England), Midwest and Southwest.
Consumer industries, including those served by FedEx, Home Depot and Outback Steakhouse, ranked No. 1 in jobs, WEFA reported. The computer sector was second, medical third, and communications (including the Internet) was fourth.