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Venture Capital Firms

Published on Nov 18, 2015

Are you an entrepreneur? Are you curious about the world of venture capital? Find some answers to your startup's questions in this look at the discrepancy between several hotspots of venture funding.

PRESENTATION OUTLINE

Venture Capital Firms

East V. West                                                               
Photo by Gamma Man

Hint: Where is Silicon Valley?

Silicon Valley:

  • 2/3 more activity than NY 
  • 50% more than N.E. 
  • Clear Leader in VC
Photo by Nrbelex

And, the Valley leads the way in each stage of development.



Including seed stages.

BUT...

Photo by Zuhair Ahmad

There's a 2:1 ratio for dollars deployed between Silicon Valley and New England/NY Metro.

Simple truth: Silicon Valley attracts more early stage companies.

So, investors in Silicon Valley are willing to take more of a risk on "pre-revenue companies."

Photo by Tomás Fano

Early stage companies are the lifeblod of any venture ecosystem...

And this ecosystem attracts...

  • Entrepreneurs 
  • Who attract investors
  • Who attract service providers
  • Which create early deal flow 
  • Which leads to more turnover  
Photo by Jaako

This symbiotic cycle especially thrives in the Valley. Why not elsewhere?

1. The history of innovation behind Silicon Valley—Hewlett Packard, Intel, Apple, enough said.

2. The network effect (giants Cisco, 3Com, Bay Networks, etc. are located in the area)

3. The "buzz" factor. Face it, it's Silicon Valley.

Photo by Stéfan

4. $$$

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5. Successful operators who have "cashed-out" often seed former colleagues and other "in-industry" entrepreneurs.

Silicon Valley, #1.

Trust the experts

This valuable information was originally published by Joseph Bartlett, Founder and Chairman of VC Experts. If you are looking for more information on venture capital and private equity please visit www.vcexperts.com and check out our Intelligence Database and Reference Material.

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