FACTS NOT ON FOX NEWS: California attracts more startup investment than 49 states combined

$366 billion in venture-capital funding raised by companies big and small in 2026

What you need to know: Under Governor Newsom, California secures more venture capital funding than the rest of the country combined.

SACRAMENTO - Governor Gavin Newsom announced that California, the nation's #1 state for venture capital, has reached another major milestone, attracting $366 billion in venture capital funding in 2026. This year, more than 4,000 California-based startups have secured more funding than startups in all 49 other states combined. Fueled by California's unmatched leadership in technology, artificial intelligence, and innovation, the Golden State continues to outperform the rest of the nation, attracting investment, creating new companies, and building the industries that will define the future.

While right wing propaganda may try to paint a different picture of California's economic success, it is far from reality. California is dominating - drawing more venture capital than every other state combined. Entrepreneurs, investors, and innovators continue to bet on California because this is where ideas become companies, companies become industries, and the future gets built.

Governor Gavin Newsom

World-leading economy

Since Governor Newsom took office, California's annual GDP has grown by more than $1.18 trillion, reaching $4.25 trillion in 2025. First-quarter 2026 economic output reached an annualized $4.4 trillion, following annual GDP gains exceeding $200 billion in each of the previous two years.

As the world's fourth largest economy, California continues to lead the nation where it matters most - creating new businesses, attracting venture capital, driving technological innovation, expanding advanced manufacturing, growing high-tech industries, and producing more than any other state. In fact, The Golden State continues to be: #1 state for new business starts, #1 state for manufacturing, #1 state for high-tech business, #1 state for agriculture.

California also remains home to more businesses than Texas or Florida, and continues to be America's start up capital - with more than 4.3 million small businesses employing 7.6 million Californians.

In the first quarter of 2026, California's economy grew at a 3.7% annualized pace - its best quarterly growth ranking since 2013 and one of the fastest growth rates in the nation. Meanwhile, Texas grew just 0.9% and Florida 1.6% during the same period.

When it comes to job creation during the first quarter, California added about 131,500 jobs over the previous year - the largest increase of any state. California's workforce posted a 4.2% productivity increase in 2025, making the Golden State the single largest contributor to national productivity growth and accounting for roughly 14% of total U.S. economic output, despite being home to only 12% of the U.S. population.