Having Lots of VC Investment Doesn't Boost Startup Activity, Kaufman Finds

Contrary to conventional wisdom, research universities that receive millions of dollars in government grants don't contribute to higher entrepreneurship rates in their hometowns, says a new Kauffman Foundation study, which looked at startup rates in 356 metropolitan areas in the U.S. Having lots of venture capital investment in your market doesn't necessarily boost startup activity either, the study found.

"Policymakers should not rush to create public venture capital funds in the hope of creating more startups or a startup culture," write the study's authors, Yasuyuki Motoyama, Kauffman's senior scholar in research and policy, and Jordan Bell-Masterson.

The full report is online at: http://www.kauffman.org/newsroom/2014/01/report-on-factors-that-boo...