'Billionaire Exodus? California Drew 10x More Venture Capital Than Any Other State This Year'

California drew more than $335 billion in venture capital funding this year, reports the Los Angeles Times, citing data released Thursday by PitchBook on private market funding:

Its next biggest competitor, New York, raised less than a tenth of California's total. Texas raised 1/40th of the amount... Although a campaign for a new tax on billionaires has convinced some ultra-rich residents to shift to other states and businesses often complain that high property and energy costs and an anti-business regulatory regime make it too tough to make money in the state, the inability of the top talent, companies and investors in AI to set up elsewhere shows California's enduring attraction.

The state's economy grew 5% last year to a record $4.25 trillion, making it larger than every country other than the U.S., China and Germany. It is home to nearly 400 billion-dollar startups — more than any other state, according to CB Insights... Among metropolitan regions, Los Angeles ranked behind only Silicon Valley and New York, which attracted $98 billion and $11.5 billion in venture investment, respectively... Investors poured in nearly $8 billion across 207 deals in the Los Angeles, Long Beach, and Santa Ana metro areas, up 28% from a year earlier, according to PitchBook...

Nearly 90% of invested dollars [in California] went to AI firms, up from last year, when around 65% of new funds were allocated to AI. "If you're a tech company and you're not an AI company, you have a very, very difficult opportunity ahead of you to raise capital," Stanford said.

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