Start-up Hot Spots
Silicon Valley is not the only hot spot for new technology start-ups. Regions across the nation are finding out what potential exists in gaining capital investment for their business.
Here is a look at recent percentage growth by region over the past five years. It seems as if new funding opportunities are finding their way across country with the southern region seeing the most funding in recent years.
• Northwest: -10.1%
• Southwest: -41.9%
• Silicon Valley: +12.6%
• Midwest: +103%
• NYC/Metro: +.1%
• New England: -8.3%
• South: +3,750%
Silicon Valley and New England have remained the most heavily funded regions throughout the nation. While certain regions have seen an increase in funding within the last few years, the number of new deals brokered in these areas have either decreased or plateaued. Overall, there have been drops in new deals since 2010 across the nation.
While many venture capitalists look at location before investing, many other challenges face new founders. The largest regional challenge seen is the ability for the business within an area that is hospital to the start-up. Majority of the time, it depends on the type of business the rest believing that the area is a great area.
A list of day-to-day difficulties:
• Access to equity financing.
• Scaling operations for growth.
• Regulatory/Political environment.
• Business conditions in existing markets.
• Difficulty recruiting employees/managing talent.
• Access to credit.