Venture Magnets

Venture capitalists are increasingly finding Southern California – and San Diego specifically – a more attractive place to put their cash, The New York Times reported today.

The article states:

In 2005, venture capitalists invested $2.54 billion in 301 deals in the San Diego area and in Los Angeles, Ventura, Riverside and Orange Counties, a 17 percent increase in dollars over 2004. By contrast, the industry invested $2.67 billion in New England, a 13 percent decline in funds.

The change marks an ascendancy for the Southern California region, now challenging the Boston corridor as No. 2 behind Silicon Valley in allure to venture capitalists.

Titled “Seed Money, It Seems, Doesn’t Need Much Rain,” the article focuses on one executive, Robert More, a recent New Jersey transplant to San Diego, who extols the virtues of the local climate – both for weather and investment.

– ANDREW DONOHUE