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America’s VC dominance is now being challenged: NYU study

The flow of U.S. venture capital isn't what it used to be. According to a new study, America’s long-held singular dominance of startup and venture capital activity is being challenged by "the rapid ascent of cities in Asia, Europe, and elsewhere."

Still, the U.S. remains the clear global leader, but the rest of the world is gaining ground at an accelerating rate, the study continued. New York University's Shack Institute of Real Estate, along with the Center for American Entrepreneurship, examined the flow of venture capital over 100,000 deals from 2005 to 2017. In the mid-90s, the US accounted for more than 95 percent of global VC investment. By 2012, this number trickled down to just 70 percent. At the end of 2017, the US share had plummeted to 50 percent.  

While the Bay Area remains the world’s preeminent beneficiary of VC investment — with New York, Los Angeles, and Boston are among the top 10 cities contributing to global venture growth — only six of the top 20 cities are located in the U.S. Some 14 cities are in Asia or Europe. At the individual level, only two American cities crack the top 20 fastest growing startup hubs.

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