As much as I hate to say it, unfortunately the Midwest and South are as overlooked as ever by venture capital. We received a great presentation from the NVCA that reviewed the venture capital market in 2018. The slide below shows the trend of investing on the coasts is getting even stronger.
The NVCA attempts to show some positivity for the rest of the country outside of CA, NY, and MA as certain regions of the country such are seeing nice growth rates in VC dollars invested. However, the overall increase (~$3bln) is a bit soft relative to the total amount of venture capital invested during 2018 ($131bln).
Also note, fund sizes for non-coastal VC have increased slightly to $25mm, although this figure is in line with 2013. Fund size on the coasts however has exploded to $82mm. This means startups in CA, NY, and MA will continue to receive far more capital and attention than those in the Midwest and South.
While I love rooting for underserved regions and it’s certainly an area of focus for our fund, your chances of success do improve the closer you are to capital (CA, NY, MA).
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