Keith Rabois is a venture capitalist who made early investments in companies like DoorDash and Airbnb.
TechCrunch Disrupt, Photo by Max WhittakerSan Francisco saw a sharp decline in seed and angel investments this year compared to 2019, according to
new research released Thursday by Pitchbook and the National Venture Capital Association.
This may validate prominent VCs like Keith Rabois who have been predicting an end to the Bay Area's startup dominance.
While San Francisco saw a 10-year low, cities like Atlanta and Boston saw an increase in deals — potentially signaling a long-term trend away from Silicon Valley, the report said.
Visit Business Insider's homepage for more stories.
Some VCs have been declaring that San Francisco is over, and now they have the numbers to prove it.Despite record-breaking investment in the venture capital industry, the Bay Area saw a sharp decline in angel and seed deals in 2020, according to a report by
Pitchbook and the
National Venture Capital Association.In 2020, San Francisco reached only 81.2% of the angel and seed deals it made in 2019. Although it still had more deals than any other city, it recorded a "a 10-year low in proportion of total deal count." This means, compared to other major cities, San Francisco was less dominant than it's been in the last decade.It's easy to attribute this to the pandemic; however, the venture capital industry managed to invest over $150 billion this year for the first time ever. VCs weren't necessarily investing less - this newly-remote world just gave other cities a better chance to get in on the action.
