Pockets across the country are slowly, but surely, turning into technology hotspots. While traditional Venture Capital funds tend to be focused in Silicon Valley and New York City, there is a slow migration underway. This migration is happening throughout the country: the flyover states of the Midwest, the Southeast, New England, and “Everywhere Else.” The only thing that everywhere else is truly lacking, is ready access to capital. True, there are VCs and firms everywhere, but not nearly in the same density or with the same level of funds as those in the Valley and NYC. Monday, however, a new fund was launched. A fund of the likes of those in the Valley, but specifically for the rest of the country. This will go down as a watershed moment for everywhere else.
AOL co-founder Steve Case and his Revolution Venture Fund announced on Monday Sept., 30 that they have raised $200 Million to fund startups based outside of Silicon Valley, or “Everywhere Else.” Though the fund will not exclude investments in startups based in the Valley, or New York for that matter, but will focus on the “rise of the rest,” as Case calls it. While not the first fund outside of Silicon Valley, according to the press release announcing the fund, “[The Revolution Venture Fund] is believed to be the largest first-time venture fund launched outside of Silicon Valley since the 2008 financial crisis.” The sentiment is again highlighted in an open letter from Case, and partners Tige Savage and David Golden, “We believe there are great entrepreneurs building great companies all over the country, so we are less likely to be investing in Silicon Valley and more likely to seek opportunities elsewhere.”
The Rise of the Rest
It is no secret that “Everywhere Else” has been rising for some time. In fact, one has to only look at this weeks Everywhere Else Cincinnati to validate this position. The event was a huge success, and we have much to write about it, but one panel in particular stood out. “Not all Money is Created Equal and Location Matters to Investors,” which included Madeleine Ludlow, Blair Garrou, Joe Medved, Jonathon Perrelli, and Mark Hasebroock, really highlighted many of the aspects of the rise of Everywhere Else in the eyes of investors. First and most importantly, everything is cheaper Everywhere Else. Further, there is a much lower level of competition between VCs, in relation to NYC or Silicon Valley.
While pockets within the “Rest” of the US are already catching up with the Valley and NYC, the Revolution Venture Fund will undoubtedly lead to more funds, and help shift capital resources, which may be the only thing that the “Rest” is truly lacking, everywhere else.
