If you agree with The Wall Street Journal's recent claim that Web startups have hit a cash crunch, you might just be in the wrong place at the right time.
According to a recent report by CB Insights, a New York City-based VC database, the cash is still flowing, to the tune of 790 firms receiving a total of $7.9 billion worth of VC in the third quarter of 2011. If that rate of investment continues through the fourth quarter, CB Insights estimates it'll be a $30 billion-plus year for venture capital, the highest level in a decade.
So where exactly is the money? California still easily wins the state rivalry for VCs, claiming 40 percent of the nation's deals and almost half of all VC investment dollars, CB Insights reports. The real race seems to be for second place, with New York beating Massachusetts for both VC deals and dollars for the first time ever. As New York's VC deals and dollars hit record levels, Massachusetts suffered from a dip in deals in the third quarter, leading CB Insights to wonder, "While the state's sector diversity can be viewed as a good thing, is there a 'jack of all trades, master of none' issue facing Mass?"
Here are the top 10 states for venture capital, according to number of deals, with additional third quarter stats: