From Justin Fox in Bloomberg:
It showed 2018 to be the second-biggest year for venture capital investment in U.S. history — with the $99.5 billion invested topped only by the $120 billion...invested at the tail end of the dot-com frenzy in 2000. But only about 30 percent of 2018 VC investment landed outside the superstar metros of San Francisco, San Jose, New York and Boston.
From Mary Ann Azevedo in Crunchbase:
But perhaps the most notable market move the venture firm witnessed over the year, according to Wong, is that 2018 marked the first time the firm saw so many high-profile exits of companies that were not based in Silicon Valley...In fact, the firm said one-third of all its U.S. investments in 2018 were made outside of Silicon Valley.
30% is a big number, in my opinion. This doesn't speak to a newfound altruism about spreading the startup scene to non-traditional areas of the country - it does speak to how hard it is to find reasonably-priced deals in Silicon Valley, right now. Hard enough, in fact, that the Trump Administration conveniently put a stop to competition from China. We're constantly told that Trump and Silicon Valley don't get along, but that just might not be the complete picture.