Infographic: Startup Bubble 2.0?

By Nicholas Jackson

Are we really in the middle of another tech bubble? Some say we are, telling us we only have to look at valuations on the secondary market for proof. Facebook, to use one big example, has been valued at close to $100 billion. But this infographic from Column Five Media looks at this industry from another perspective. Venture capital funding for startup companies have only just recently returned to pre-recession levels

Infographics are always a bit of a hodgepodge of statistics culled from a variety of sources. Here, we sort through the clutter and pull out some of our favorite facts and figures:

  • After a major dip in late 2008 and early 2009, the venture capital industry returned back to original pre-collapse numbers. The total capital invested in Q1 2011 was even higher than the pre-collapse days in early 2008; however, the number of deals was still significantly lower. This positive trend indicates that it may be a good time for startups to raise capital for their businesses.
  • Although venture capital investments are made all over the country, there are a few key states that routinely see the most dollars. California, of course, is at the top of the list. Home to Silicon Valley, California brings in about 52 percent of all venture capital. Rounding out "The Big Five," as this infographic refers to the states with the most venture capital, are Massachusetts, New York, Texas and Washington.
  • The types of companies receiving the most capital this year are social commerce; advertising, sales and marketing; social; data storage; and gaming.

Check out more Infographics on the Technology Channel.

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This article available online at:

http://www.theatlantic.com/technology/archive/2011/06/infographic-startup-bubble-20/240210/