It is an important source of capital for startups that banks deem too risky to finance. Therefore, it would be useful to examine how the venture capital industry has fared during the recent recession. This report focuses on the Philadelphia metro area1 and how it compares with the nation. In particular, it highlights the fact that the area increased its share of the nation’s biotechnology deals during the recession.


Every quarter the National Venture Capital Association releases the MoneyTree Report in conjunction with PricewaterhouseCoopers using data collected by Thomson Reuters. The report details venture capital investment across 16 sectors and 18 regions from 1995 to the present. Funds from venture capital firms, small business investment companies, and venture departments of corporations, institutions, and investment banks are documented. If angel investors, corporations, or governments also contribute during the same round of financing as one or more of the aforementioned investors, their investment is also counted. However, the report does not include committed money — only actual cash-for-equity transactions. Furthermore, debt, acquisitions, initial public offerings, and non-cash investments, such as services-in-kind, are not counted.

  1. The MoneyTree Report defines the Philadelphia metro area as eastern Pennsylvania, southern New Jersey, and Delaware.
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