What makes one startup hub more successful than another?Silicon Valley: Something in the Water?
“Silicon Valley” has become the global watchword for tech innovation and growth even if the relevant companies are based across the American West Coast in the Bay Area (San Francisco, Silicon Valley and San Jose), Seattle, Los Angeles and San Diego.
What’s their secret?
I should know. I’ve lived and worked in the startup ecosystems of four different countries on three continents over the past ten years, including the American West Coast, Europe and Australia. During that time, I’ve met several thousand tech startup founders and funders, and countless venture catalysts. I’ve met advisors and professional service providers of all shapes and sizes that cater to the tech startup ecosystem.
This experience has given me some valuable insights into what makes a successful hub.
For example, let’s assume that there are smart, creative, hardworking people who want to work for startup and emerging growth companies where they want to be. It could be anywhere in the world. Let’s call them founders and talent — or “labor.”
Let’s also assume that there are smart, creative, hardworking people who like to finance startup and emerging growth companies anywhere in the world. We can call them funders — or “capital.”
This being the case, I ask the question again: why is it that over the past several decades the world has experienced extraordinarily different outputs of innovation, commercial success and market value creation between Silicon Valley and the rest of the world?
I have a hypothesis.
I believe the the most important variable to Silicon Valley’s success is simple: venture finance knowledge and expertise. In my experience, one of the primary obstacles facing entrepreneurs outside the Valley is a lack of knowledge and expertise in accessing sources of capital to launch, finance and grow ambitious startup and emerging-growth ventures.
I’ve tested this hypothesis with primary research, interviewing more than 200 tech startup founders headquartered outside the United States. We discussed their hopes, dreams, opportunities, challenges and failures regarding the two basic startup company inputs: labor and capital.
I’ve also engaged in secondary research across many jurisdictions. This has included research-intensive university experience and a variety of commercial environments.
All of this research has confirmed my hypothesis that most ventures outside Silicon Valley do not have the requisite venture finance knowledge and expertise to enable them to design and execute strategies and tactics that lead to successful venture finance results.
That gap in knowledge and expertise is a problem not only for entrepreneurs with Silicon Valley-like dreams, but also for startup hubs and ecosystems that aspire to be the next Silicon Valley.
Here’s the great news: you don’t need to be in Silicon Valley in order to successfully raise outside capital.
There are roadmaps used by successful startups to secure financing, which anyone can follow.
All you need to know is where to find it and how to apply it.
If you’re in need outside capital to help your startup reach its full potential, I invite you to take advantage of the roadmap I have created for founders just like you.
These programs incorporate over 30 years of professional experience from the perspective of startup founders, venture finance investors, and venture finance lawyers.
Accelerate your venture finance education and change the trajectory of your startups future today.
Don’t let another moment pass by without taking action on this topic.
Good luck and Godspeed!
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