2015 was a recovery year for the startup sector of the Delaware Valley. More than $600 million was invested in local companies by venture capitalists, an equivalent of 25 percent increase from 2014. These latest figures are from the annual MoneyTree report, released by National Venture Capital Association and PricewaterhouseCoopers.
Even though the past four consecutive years have witnessed definite growth, the region is still striving to return to where it was before the recession, when total annual investments reached $890 million.
Brock Weatherup, a local investor and president of a networking group called Philly Startup Leaders, said that the momentum has been positive. He added that when the momentum increases, the results increase as well. He pointed out that the increasing amount of investments in the region shows a local technology environment that is continuously attracting more talent. It can also offer real estate opportunities that are competitively priced, and a supportive community to the locals.
He mentioned that the available infrastructure is meant to support the sector and enhance its scalability. What is required now is for stakeholders to identify how they can ensure stability, sustainability as well as the continuous growth of the sector.
The Philly region has been pushing to recover its status of being a hub for startups, especially in the biotech and healthcare industries.
Nevertheless, the entire Philadelphia region still has a lot of work ahead before it can become competitive on the national level. In 2015, New York and Boston-based firms raised about ten times more investments than the Delaware Valley, at $7.3 billion and $6 billion respectively, while Washington D.C.-based startup companies raised over $1.4 billion.
Going beyond the Northeast, approximately half of the $58 billion venture capital investments raised in 2015 was raised by Silicon Valley enterprises.