Venture Capital Holds Key to Economic Health - 8 News NOW

Venture Capital Holds Key to Economic Health

LAS VEGAS -- One way to measure the strength of economic diversification in a state is in the amount of venture capital it attracts representing investment in innovative businesses.

Nevada reached its peak in 2005, when the state secured $65 million in venture capital. But the onset of the Great Recession has coincided with a sharp drop in such investment statewide. Through June of last year, Nevada had attracted only $14 million in venture capital in 2011.

Since 2001 entrepreneurs have poured $135 million into the software industry, by far the most of any sector in the state in terms of venture capital.