Nov 7, 2017, 5:03 PM
The little engine that could keep on churning.
US venture capital (VC) firms continue to look towards the world of high tech for investment.
In Q3 2017, investment in tech increased 32% on a 12-month trailing basis. Though the number of deals dropped 6.3% compared to Q3 2016 levels.
While the number of deals dropped could eventually impact the US office market, there are no signs of that for San Diego. In fact, VC dollars are flowing into San Diego, with an average deal size of $11.9M, on par with Los Angeles.
Overall, this potential for a national slowdown shouldn't really impact the flow of VC funding in San Diego going forward. Instead, it is widely seen as a sign of the fiscal discipline and caution needed to help the industry avoid another disaster like the dot-com era plunge. That points to a sustained, healthy tech sector for San Diego well into the future.
Researcher: Patrick Ashton | Editor: Michael Cronin