Capital density a top consideration for startups

Greater Seattle ranks number 7 in a new list of the top 20 metros for venture capital activity. The Atlantic, in a series on the geography of venture capital and startups, has listed the Metro area of Seattle, Tacoma, and Bellevue as number 7, with close to a billion dollars invested in over a hundred startups in 2012.

It’s becoming apparent that a key metric for startups looking to make it is “entrepreneurial density” – the ratio of startup founders and their employees to the general population of a city – and easy access to capital. The Atlantic’s series on mapping domestic “siliconias” indicates that venture capital has become extremely geographically diverse since the 1980s, when it was concentrated in San Jose and surrounding areas. While that region still heads the list of locations, with nearly $7bn invested in 744 deals in 2012, Greater Seattle is near the top, with its $886 million invested in 2012.

The area is definitely a good one for startups, with a strong population of incubators and a lot of experienced people. These statistics show that the money is also here.

For more on The Atlantic’s series, see their tag for the series here.

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