Recommended article from our founders Adam Radly and Bob Bates:
Adam Radly Bob Bates have raised capital all over the US but how much more difficult is it in some cities compared to others? Some people think that VC funding is concentrated in the US. It’s much more concentrated than that. It’s all in Silicon Valley and a small number of other cities. This is an interesting article from Venture Beat about VC funding in other cities.
With Silicon Valley getting more expensive by the day, there’s plenty of talk of businesses forgoing the area for other U.S. cities, a phenomenon often called “Rise of the Rest.” But is startup activity in markets typically underserved by venture capital actually rising?
The nonprofit Center for American Entrepreneurship published a report today that aims to measure this by looking at the number of startups in a variety of U.S. metros that have received their first round of VC financing and how those numbers have changed since 2009, using data from PitchBook. The report’s author, Ian Hathaway, told VentureBeat that he chose to look at “first financings” as a measure of startup activity, as this is an indication, albeit an imperfect one, that the firm has potential for high growth. Additionally, an increase in the number of startups receiving first financings could be a sign that more high-growth firms are being created in the city.
See the rest of the article here.
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