Why Investing in the South, Midwest, and Mountain West makes sense
Why Investing in the South, Midwest, and Mountain West makes sense
Venture capital firms play a vital role in fostering innovation and driving economic growth, and these firms must take a more inclusive approach to where they invest. This includes investing in regions beyond the traditional tech hubs of Silicon Valley and New York City, such as the South, Mountain West, and Midwest.
One of the main benefits of investing in these regions is access to a diverse talent pool. The South, Mountain West, and Midwest are home to many universities and colleges (e.g., Northwestern University, Baylor University, Duke University) that produce a steady stream of graduates with STEM and business skills. These graduates often want to stay in their home region, and by investing in local startups, VC firms can help retain this talent and support the local economy.
Another advantage of investing in these regions is the lower cost of living. This can mean lower overhead costs for startups, which can help them stretch their funding further. The lower cost of living can make it easier for employees to afford to live near their workplace, which can help improve employee retention.
Furthermore, these regions have a rich history of entrepreneurship and innovation. The South is home to many successful companies like Dell, UPS, and the Midwest is home to companies like Boeing, Ford, and John Deere, and the Mountain West is home to companies like BambooHR,. Investing in startups in these regions can help build on this legacy and drive economic growth.
VC firms can also play a key role in supporting underrepresented groups. Many of the founders in these regions are from diverse backgrounds, and supporting them can help increase diversity and inclusivity in the tech industry.
In conclusion, investing in regions like the South, Mountain West and Midwest can bring a number of benefits for VC firms, including access to a diverse talent pool, lower costs, and a rich history of entrepreneurship and innovation. By supporting startups in these regions, VC firms can help drive economic growth, create jobs, and build a more inclusive tech industry.