(Editor’s note: Amy Huffman is fascinated by the intersection of technology, economic development, startups and the economy. She uses data to discover how the entrepreneurial ecosystem impacts startups and their ability to succeed. In this story, as part of the news partnership between WRAL TechWire and ExitEvent, she highlights five key stats to better understand how VC impacts North Carolina’s startups and start-up community.)
DURHAM, N.C. – Rarely, if ever, is success a result of one factor or person.
In football, contributions from positions like running backs directly influence a team’s ability to win or lose, but they aren’t solely responsible for the game’s outcome.
Similarly, the success of startups or a start-up community doesn’t depend on venture capital funding alone. Like a running back’s ability to push the ball forward and put points on the board, venture capitalists (VCs) and their investments can move entrepreneurs, their businesses and subsequently, their communities towards success. But alone, their actions don’t equal a loss or win.
If the success of North Carolina’s start-up scene solely depended on the number of deals between venture capitalists and entrepreneurs and the total amount of money VCs invest in N.C. companies, North Carolina would be trouble. Any way you cut it, the most recent data released by the PricewaterhouseCoopers/National Venture Capital Association (NVCA) show North Carolina is trailing its peers (and some non-peer states) in both the number of deals between VCs and entrepreneurs and the total dollar amount VCs invested.
Is this the whole story? Jason Caplain of Bull City Venture Partners (BCVP) doesn’t think so, and I’m inclined to agree with him. Along with Caplain’s thoughts on the matter, we’re highlighting five key stats from the data you should know to better understand how VC impacts North Carolina’s startups and start-up community.
The full story can be read online at ExitEvent.