Finding Venture Capital Far from the Coasts

by High Alpha

From International Business Times

In 2014, investors spent $48.3 billion in venture capital. Just five states received 80 percent of those dollars. California companies received a staggering 56 percent of the total. The tendency of venture capital to remain tightly concentrated in coastal states such as New York, Massachusetts and California has accelerated in the past 15 years even though the majority of Americans — presumably among them many with viable business plans — live elsewhere.

There are likely several reasons for this uneven distribution. One is that most investors are based on the coasts and still prefer to work face to face with the companies they support. They also like to invest alongside nearby partners whom they trust.

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