SFCED | San Francisco Center for Economic Development

San Francisco Tops the Country in Venture Dollars in Q3

Startups in San Francisco raised by far the most money of any city in the Bay Area in the third quarter, with $1.6 billion being invested in 141 deals.

In Silicon Valley, which sprawls across San Mateo and Santa Clara counties, $2.4 billion was invested in 187 startup deals, according to data compiled by research firm CB Insights for its third quarter report this week.

The numbers shed more light on the ongoing debate in some quarters about whether San Francisco has eclipsed the traditional stronghold of Silicon Valley for startup activity and funding.

Those who argue that it has usually focus on a city-by-city count rather than on comparing San Francisco with the region to the south that has long been the hub of startup deals and dollars.

It’s a debate that’s important to those who advocate urban innovation hubs over regional development clusters, businesses deciding where to locate — and those concerned with status and VC mystique.

To put it into further perspective, the Bay Area accounts for between 70 percent and 80 percent of all venture activity in California.

And CB Insights reports that the number of deals in California in the third quarter top the total of the next 16 states combined.

So the region remains the envy of anybody else in the country that wants to establish their own innovation centers.

Read more: San Francisco Business Times (blog) San Francisco tops the country in venture dollars in Q3