California attracted $366 billion in venture capital funding in 2026, with more than 4,000 state-based startups securing more funding than all startups in the other 49 states combined, according to Governor Gavin Newsom's office.
California ranks as the nation's top state for venture capital investment and has extended its lead in multiple economic measures. The state's annual gross domestic product reached $4.25 trillion in 2025, with first-quarter 2026 economic output annualized at $4.4 trillion. The first quarter 2026 growth rate of 3.7 percent represented the state's strongest quarterly performance since 2013.
Job creation in the first quarter of 2026 totaled approximately 131,500 positions, the largest increase of any state, and the state's workforce posted a 4.2 percent productivity increase in 2025, according to figures provided by the governor's office.
California leads the nation in new business starts, manufacturing, high-tech industries and agriculture. The state is home to more than 4.3 million small businesses employing 7.6 million workers. As the world's fourth-largest economy, California accounts for roughly 14 percent of total U.S. economic output despite representing 12 percent of the nation's population, according to the governor's office.