This year Revolution embarked on its first two “Rise of the Rest” road trips, centered around nine Midwest cities to celebrate the rise of entrepreneurship across the United States and meet with entrepreneurs and other leaders building these communities.
At the beginning of the year, we predicted that the “Rise of the Rest” would accelerate with record increases in venture capital investments going to cities outside of Silicon Valley, and we continue to see and experience this momentum:
- At the end of Q3, cities east of the Mississippi had raised $9.9 billion, $2.4 billion more than the $7.5 billion through the first three quarters last year.
- TechCrunch reported that the Midwest is having its best year in a while with more companies being funded this year than at any point in the past five years.
- According to Inc. magazine, Washington, D.C., was home to 319 of the 5000 companies in the Inc. 5000 in 2014 making us second only to New York.
- In 2014, close to 76 percent of venture capital went to three states: California, New York, and Massachusetts. Yet 76 percent of the Fortune 500 companies are in the other 47 states.
- Pitchbook found that there are four regions in the U.S. that have a higher unicorn (companies that have received venture funding and a valuation of $1 billion or more) success rate than Silicon Valley.
We think it comes down to this, Great Companies Will Thrive, Despite Where They’re Based. We are thrilled about the data and continue to look to invest in off the beaten path regions.