Report: Venture Capital Created Millions of Jobs

Venture capitalists have helped launch U.S. companies that created 7.6 million jobs while generating $1.3 trillion in total revenue during the last three decades, according to a report released Monday by the industry’s biggest trade group.

The report, compiled by economic researchers DRI-WEFA for the National Venture Capital Assn., estimated that employers created one job from every $36,000 of venture capital invested from 1970 to 2000. It looked at independent companies that received early financing from venture capitalists, as well as venture-backed start-ups now owned by other firms.

California, long considered fertile ground for venture capital, benefited most from the industry’s rise, the report said. Venture capitalists invested $108.8 billion in California start-ups during the years covered by the study, creating 1.4 million jobs and spawning $270.6 billion in total revenue.

Massachusetts start-ups received the second-biggest sum of money, $26 billion, and parlayed the investments into 318,433 jobs and revenue of $48.4 billion. Texas companies did more with less venture capital, turning investments of $17.2 billion into 676,158 jobs and revenue of $158.2 billion.

The report, which expanded on preliminary figures released in May, highlighted an industry that is wrapping up the worst year in its history.