Shulou(Shulou.com)11/24 Report--

Beijing, Nov. 1 (Xinhua) in the third quarter of this year, Silicon Valley's share of start-up financing transactions in the United States fell below 20% for the first time. Silicon Valley's control over startups and venture capital is eroding as startups flourish in the United States.

Silicon Valley has long been regarded as the entrepreneurial capital of the world. As recently as the mid-2000s, Silicon Valley accounted for nearly 1/3 of financing transactions in the United States, according to analyst firm PitchBook data and the National Venture Capital Association (NVCA), an industry group. But there has been a surge in interest from investors in non-traditional start-ups such as hedge funds to use startups as an asset class, which has helped drive start-ups everywhere. A growing number of entrepreneurs and investors are also setting up companies outside California's technology corridor, driven in part by the rise of remote transactions.

Silicon Valley's share of US venture capital deals has declined "before you absolutely had to start a business in Silicon Valley," says Jack Jack Selby, an Arizona venture capitalist. He is the managing director of Thiel Capital and recently launched his own venture fund aimed at Arizona startups. Selby also said that in the past few years, the venture capital industry outside Silicon Valley has been underdeveloped to support startups that are not in the center of technology.

But Silicon Valley still dominates when it comes to the amount of capital raised by startups. Silicon Valley companies accounted for 34% of all venture capital in the United States in the first three quarters of this year, more than double the amount raised by New York-area startups, which ranked second, according to PitchBook and NVCA.

Welcome to subscribe "Shulou Technology Information " to get latest news, interesting things and hot topics in the IT industry, and controls the hottest and latest Internet news, technology news and IT industry trends.