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Monday, Mar 24, 2008 « Back to the Press Room
Washington_Post

Region's Venture Capital Rank Slips

Area Overtaken by Northwest, San Diego.

Regions of the West Coast and Midwest moved ahead of Washington as top destinations for venture capital in recent years, as the local venture economy grew more slowly than the national average, a Washington Post analysis shows.

In 2001, the year the technology bubble popped, Washington ranked sixth among top destinations for venture capital, after Silicon Valley, New England, the New York metro area, Texas and the Southeast. Last year, it was ranked 10th, overtaken by the Northwest, San Diego, the Midwest and Los Angeles/Orange County...

...When Silver Spring Web 2.0 company Freewebs recently spun off its Social Gaming Network into a company that builds games to be played on Facebook and other social networks, it based the new firm in Silicon Valley

"Silicon Valley is the Mecca of most of the technology companies in our space, so it kind of behooves us to have a presence there," said Shervin Pishevar, Social Gaming Network chief executive. "A lot of the IT world in the Washington, D.C., area is heavily reliant on government contracting and so that has some effect in terms of the psychology of innovation."

Then again, he said, Freewebs has no plans to move. "That doesn't mean Freewebs and others can't thrive out here in Washington," he said. "It's our vision to build Silicon Springs in Silver Spring and the surrounding area."

Original Article URL: http://www.washingtonpost.com/wp-dyn/content/article/2008/03/23/AR2008032301457.html