Boston VC Funding Fueling Red Hot Housing Market

Pitchbook recently released their NVCA Venture Monitor for 2021, and Boston has again set a record high for venture capital funding. Last year, Boston-based startups attracted $34.9 billion in capital funding. For the fifth consecutive year, Boston ranked 3rd highest among all metros in their regional spotlight, behind New York and San Francisco.

According to Pitchbook’s data, Boston saw a 194.9% increase in total VC capital compared to 2020. Nationwide the amount of VC funding nearly doubled to $329 billion, up from $166.6B in 2020. Boston, New York, and San Francisco hold a lion’s share of this total funding, with the 3 metros accounting for over $205B of all venture capital funding in the US. Miami, New York, Chicago and Denver saw the biggest YOY increases in total capital funding, all of which saw total dollars invested increase by more than 240% year-over-year.

For Boston, this means even more opportunities flowing to the metropolitan area in the form of white collar tech and science jobs. This comes along with news that Massachusetts actually lost residents for the second year in a row after a decades long span of population growth. Despite the state’s net loss of residents, Boston continues to grow in population thanks in large part to the amount of new opportunity flowing to the area and steadily increasing enrollment at local universities.