Governor Newsom claims California attracted investments worth $366 billion
In 2025, California's workforce achieved a 4.2 percent increase in productivity, making the state the largest contributor to national productivity growth. Although it is home to only 12 percent of the total U.S. population, California accounts for approximately 14 percent of the U.S. economy's total output.
LOS ANGELES:- Governor Gavin Newsom announced that California—the nation’s leading state for venture capital—attracted $366 billion in venture capital investment in 2026.
According to Governor Newsom, more than 4,000 California-based startups received more investment this year than the combined total of startups across the other 49 states.
Governor Gavin Newsom claims that the state is performing exceptionally well—attracting investment and establishing new companies—thanks to California’s unparalleled leadership in technology, artificial intelligence, and innovation.
Governor Gavin Newsom says, “Even though right-wing propaganda attempts to paint a different picture of California’s economic success, that is far from reality. California maintains its dominance—attracting more venture capital than all other states combined. Entrepreneurs, investors, and innovators continue to show confidence in California because this is where ideas become companies, companies become industries, and the future is built.”
According to Governor Newsom, California’s annual Gross Domestic Product (GDP) has grown by more than $1.18 trillion, reaching $4.25 trillion in 2025. Following annual GDP growth of over $200 billion in each of the preceding two years, economic output reached an annualized level of $4.4 trillion in the first quarter of 2026.
As the world’s fourth-largest economy, California leads the nation in key areas such as creating new businesses, attracting venture capital, driving technological innovation, expanding advanced manufacturing, growing high-tech industries, and outproducing any other state. It also ranks first in the technology and agricultural sectors.
In California, more than 4.3 million small businesses provide employment to 7.6 million Californians.
In the first quarter of 2026, California’s economy grew at an annual rate of 3.7%—the best quarterly growth rate since 2013 and one of the fastest in the country.
Regarding job creation in the first quarter, California added approximately 131,500 jobs compared to the previous year—the largest increase of any state.
In 2025, California’s workforce achieved a 4.2 percent increase in productivity, making the state the largest contributor to national productivity growth. Although it is home to only 12 percent of the total U.S. population, California accounts for approximately 14 percent of the U.S. economy’s total output.
