Southern California overtakes New England in start-up activity

“It’s official. Southern California has overtaken New England as the nation’s second largest center of start-up activity. Venture capitalists invested $1.122 billion into Southern California companies during the first quarter, compared to only $984 million into the Northeast companies centered around Boston, according to VentureOne/Ernst & Young. Several times over the years, venture capitalists have pumped more money into Southern California than New England companies, but these blips never lasted more than a quarter. This latest quarter (Q1, 2007) was the first time Southern California has remained steadfast in front for three quarters, which makes the trend. Sunny weather, a culture more compatible with experimentation and risk-taking, and general economic growth spurred by a more diverse and dynamic population drawn to the Los Angeles area (it is closer to Asia/Latin America) are all possible reasons.”