It would be helpful if some of the Silicon Valley venture capital / startup capital was as enthusiastic in investing in non-Silicon Valley companies. I've heard on more than one occasion that the company was great, but the only reason they are not investing is because it is not located in Silicon Valley.
The truth is that the World Would be Better if a) VC in the Other 50 Silicon Valleys had the Same Appetite for Risk Taking as is present in Silicon Valley or b) If Silicon Valley VCs were much more open to investing in the Other 50 Silicon Valleys.
Yes, it is true that at the Angel level, there's a much broader access to capital now more than ever in a broader range of geographies, but once you start to get into Series A rounds and higher, the bottleneck ("squeeze") becomes evident, and this is where Silicon Valley has a sizable advantage over other regions.
There's no lack of entrepreneurial talent, willpower, or ideas in the Other 50 Silicon Valleys. Rather, the lack of investors willing to invest in these risky endeavors to the point where they can reach the liquidity necessary to self-perpetuate their local entrepreneurial ecosystem. Small exits are necessary, but not sufficient to keep a startup ecosystem going on its own. You need large, $1B+ exits and IPOs on a fairly regular basis to do so... and that requires the financial power equivalent to what's now mainly in Silicon Valley, and perhaps one or two other locations, tops. But not in the other 47+.
The truth is that the World Would be Better if a) VC in the Other 50 Silicon Valleys had the Same Appetite for Risk Taking as is present in Silicon Valley or b) If Silicon Valley VCs were much more open to investing in the Other 50 Silicon Valleys.
Yes, it is true that at the Angel level, there's a much broader access to capital now more than ever in a broader range of geographies, but once you start to get into Series A rounds and higher, the bottleneck ("squeeze") becomes evident, and this is where Silicon Valley has a sizable advantage over other regions.
There's no lack of entrepreneurial talent, willpower, or ideas in the Other 50 Silicon Valleys. Rather, the lack of investors willing to invest in these risky endeavors to the point where they can reach the liquidity necessary to self-perpetuate their local entrepreneurial ecosystem. Small exits are necessary, but not sufficient to keep a startup ecosystem going on its own. You need large, $1B+ exits and IPOs on a fairly regular basis to do so... and that requires the financial power equivalent to what's now mainly in Silicon Valley, and perhaps one or two other locations, tops. But not in the other 47+.