California start-ups top every other state by wide margin

WSJ survey finds that of the 50 venture-backed companies in the nation that have the best chance of succeeding, 35 are in California, a stunning demonstration of the state's technological might. Most of those 35 are in the Bay Area (none in L.A. County). The rankings, compiled by research firm VentureSource, shows that venture firms are particularly interested in health care, mobile communications, and business software, all areas that have a strong presence in California. To be eligible, companies must have received an equity round of financing in the past three years and be valued at less than $1 billion. By the way, only two of the 50 companies are based in Texas, which is the fastest growing state in terms of job creation - and which Gov. Rick Perry calls "the new California." Certainly, Texas has a strong presence in technology and venture capital, but clearly it's no California.