Message from the Director
Message From Director Joel Alaya
7/21/2010 10:21:00 AM
Earlier this week, Los Angeles Times writer Jerry Hirsch’s published an article titled, “Venture capital funding in California gains steam” (July 19) which proves that, contrary to popular belief, California is still a good place for doing business. Obviously, there are issues California must still confront to make the state an ideal place for doing business but things are just not as bad as our critics claim they are.
Not only are they not as bad, but we have not invested much time to promoting the state’s greatest attributes: an enviable geographic location with Pacific Rim Access, a diverse population with ties to all corners of the world, a proven entrepreneurial record, forward-thinking policies, economic resilience and, last but not least, investor confidence.
Maybe this is why we are finally starting to see more positive news about where California’s economy is headed.
For example, according to Dow Jones VentureSource, California secured funding for 296 deals in the second quarter of this year, which represents about $4 billion venture capital funding for the state. This represents an 8% increase compared to last year.
In fact, California’s venture capital funding in the second quarter of 2010 accounted for almost 51% of the nation's $7.7 billion in venture capital funding. While 744 deals went to U.S.-based companies, California secured 296 deals. Not bad for a state that is constantly assailed by critics as business unfriendly.
And what makes the news even better is that renewable energy represented $1 billion of the money invested. Ultimately, the investments will result in jobs. In this case, we are looking at green jobs, which is something Governor Arnold Schwarzenegger has made a priority during his administration.
Focusing on the future is already starting paying off for California. Governor Schwarzenegger’s leadership and visionary thinking have clearly played a role in making California attractive—in spite of a recession. We are indeed open for business!
Joel Ayala,
Director, Governor’s Office of Economic Development (GOED) | 
