Houston's Venture Capital Issue Brief

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Houston's Venture Capital Issue Brief
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Project Information
Has title Houston's Venture Capital Issue Brief
Has owner Diana Carranza
Has start date October , 2017
Has deadline date
Has keywords Growth Venture Capital, Transactional Venture Capital
Has project status Active
Does subsume Ranking US Cities by Venture Capital
Subsumed by: Houston's VC Firms
Has sponsor McNair Center
Has project output Content
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Project Description

In this issue brief ("IB"), we explore Houston’s venture capital ("VC") investment as compared to the industry at a national level. The analysis reports venture capital investments from firms that focus primarily on venture capital investment and that predominately raise their funds from market-based sources of capital or are large, well-developed corporate venture capital funds.

On the IB we classify Growth VC and transactional vc, using 1998 to 2016 as our time period and comparing Houston results to the national trends.

Growth VC is intended to support new firms (seed, early and late stage) through growth process. On the other hand, Transactional VC supports existing firms through a transaction. Transactional investments include bridge financing for firms that want to undergo an initial public offering or to be bought by an incumbent or a private equity investor, as well as those that want to buy other firms themselves.

If we do not classify VC investments in growth or transactional VC we lead to the interpretation that all the investment is going towards HGHT startups, therefore we may overestimate the HGHT entrepreneurship ecosystem.

Progress Report

First Draft submitted for editing on October 30th, 2017

Project Location

E:\McNair\Projects\Houston\2017 Houston VC Issue Brief


Graphs provided by Dylan Dickens. No other dependencies

Key Findings

Transactional VC is far more dynamic and sizable in Houston than Growth VC, such is the case that the average dollars investment for growth VC is only one third of the average dollars investment for transactional VC over the last decade (2006-2016).