If you’ve been following the quarterly tallies of U.S. venture capital investments from PricewaterhouseCoopers/Venture Economics/National Venture Capital Association Money Tree, then 2002’s final numbers should come as no shock. Overall venture capital investments in 2002 dropped to $21.2 billion, following a downward trend that began in 2001. However, 2002’s investment levels are similar to those of 1998, suggesting that the market is stabilizing to numbers more realistic than the boom years of 1999 and 2000.

Additionally, venture capital investing is becoming more geographically concentrated, even compared to the economic boom in 2000, according to the National Association of Seed and Venture Funds (NASVF). “Most striking is that California’s piece of the initial capital pie rose from 32 percent to 42 percent of the total initial capital invested, even as Silicon Valley lamented its deteriorating economic conditions,” says NASVF’s George Lipper.

For PricewaterhouseCoopers/Venture Economics/National Venture Capital Association Money Tree’s final 2002 venture capital numbers, visit www.pwcmoneytree.com. For NASVF’s breakdown by state, visit www.nasvf.org, click on “Stories and Studies” in the “Research” section, and then search for “Initial Venture Investments Sharply Diminished, More Concentrated.”—Brian Walker