San Francisco is the birthplace of venture capital in 1960's. At that time, private equity companies and venture capital firms flocked to technology companies in the area. Up to now, the San Francisco Bay Area still leads in term of innovation and venture capital investment.

In 1960's, tech companies were spreading around San Francisco Bay Area, in northern part of California. Stanford University and its newly formed Stanford Industrial Park became the birthplace of companies such as Hewlett-Packard, General Electric,and Lockheed. Many venture capital firms were also founded such as Menlo Ventures, Mayfield Fund, and Oak Investment Partners.

The city also played a very important role to develop an area which is known as Silicon Valley, an area in the southern part of the city. Up to now, San Francisco still the largest area of venture capital investment in the United States.

According to recent research, as reported by Builder Online, the city tops the list with $8.5 billion in venture capital investment, followed by the Silicon Valley and New York. The report was developed by Martin Florida, and his colleague Karen King, in collaboration Martin Prosperity Institute, and data from Thomson Reuters.

Based on the Martin Prosperity Institute report, venture capital investment that drive both innovation and high-tech companies, still contained and remained exclusive in just a handful of regions in United States.

San Francisco Bay Area, including Silicon Valley is still the leading center with $13.5 billion in investment. That accounted to more than a third of total venture capital investment in the United States. While city of San Francisco topped Silicon Valley with $8.5 billion investment, 25% of total, followed by 15% in San Jose with $4.9 billion.

In total, 80% of U.S. venture capital investment are speading across three broad regions: San Fransisco, East Coast corridor and Southern California. East Coast corridor consist of Boston-New York-Washington, D.C. While Southern California is spanning from Los Angeles, San Diego, Santa Barbara, to Orange County.

Martin Florida wrote in his City Lab, column, "Venture capitalists have long invested in cutting-edge technology, so it comes as no surprise that venture capital investment is concentrated in the most innovative, high-tech metros."

He also added, "Venture capital investment, high-tech innovation, and startups are drawn to places that welcome diversity and therefore attract a broader base of talent. A considerable share of America's high-tech startups, after all, are founded by immigrants."

As a birthplace of venture capital in 1960's, San Francisco Bay Area still maintain its trait in innnovation which have long drawn venture capital investment. With $13.5 billion in the investment, the area booked more than a third of national venture capital investment.