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Job growth of VC-backed start-ups roughly 8 times more than at other businesses

Need empirical evidence that a robust local investment ecosystem is good for a community? Well, here it is.

A new report conducted by researchers at the Kenan Institute of Private Enterprise at the University of North Carolina in Chapel Hill and the National Venture Capital Association finds that employment grows at a much faster rate at venture capital-backed start-ups than other private-sector firms⁠. In fact, it is roughly eight times faster.

The two organizations examined “employment dynamics” of more than 67,000 U.S. companies that received venture capital (VC) investment during the period between 1970 and 2020.

“The annualized growth rate of employment at VC-backed companies in our dataset between 1990 and 2020 is 8.2 percent,” the report’s executive summary reads.  “For total private sector employment, the growth rate between January 1990 and February 2020 is just 1.1 percent.

WRAL TechWire has a lengthy article about the report at this link.

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