I don't know if the VC data includes angel investment. And, while I'm sure it's a much smaller amount in terms of total dollar figures, there have been several hundred startups funded in the Valley this year.

Granted, most of those will fail, but if even 20-30 of them succeed (10% success rate), that will be a huge boom to the California economy.

Not only that, but we're going to be seeing a number of really interesting exits/huge acquisitions in the next few years: Facebook, Twitter, Yelp, Linkedin, Zynga et all... If 2 out of those 5 goes IPO, that will add tens of billions of dollars to the economy.

Companies like Google, Apple, Cisco, Intel, etc... are all doing quite well.

Nation wide, companies have an estimate of $1.4 Trillion dollars of cash on hand, and they really don't want to hire. but, as soon as the economy starts to rebound, they are going to be interested in growing fast, and merger and acquisitions are typically one of the fastest ways to do that. $1.4 Trillion buys a lot of small recently funded startups.

No, I think California is going to be doing just fine in the next few years.