05:43 AM

Funding Innovation: Silicon Valley Still Tops As New York City VCs Will Tell You

Silicon Alley Insider has an interesting post: New York VCs Spend 90% Of Their Money Out Of Town.

The article quotes ChubbyBrain, a site that tracks VC investments, which found "Only 10% of NYC Area Venture Capitalist Investment Has Gone to NYC Startups."

That's about $1.8 billion in the second quarter of 2009 going into investments outside of NYC, the majority to Silicon Valley based companies.

It's no wonder that Silicon Valley continues to attract companies because this is where investments are made. This is despite an often repeated mantra that: "innovation can be carried out anywhere."

It is true that innovation can be carried out anywhere, but innovation in Silicon Valley gets funded. As New York City VCs might say it: mantra shmantra.