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Where do venture capitalists invest and why?

Where do venture capitalists invest and why?

Entrepreneurs wishing to raise capital are often told that investors like to "keep things closer to their own home." But is it true? The argument in favor of venture capital investment or any other at the local level is simple: one-on-one meetings are much easier to hold when one is on a short trip by car or public transport trip from one another. Even at a time when video chat is widespread, yet personal meetings are much more significant.

Specialists, using Crunchbase data, built and analyzed a set of data from almost 36,700 venture capital transactions, covered by almost 21,000 investors with nearly 22,000 different start-ups in the US from the 1st quarter of 2012 to November 1, 2017. And the purpose of this research is to use these findings for backup and, if necessary, violate beliefs and prejudices that relate to the investor’s desire to invest in a particular business, and also to understand how this relates to funds.

Government or state-supported enterprises tend to invest in the parts that they allegedly serve, and most individual business angels tend to invest in their own states. Given that many accelerator programs have a clear geographic focus - for example, the various Techstars outposts in cities ranging from San Francisco and New York to relatively small centers in Kansas City, it is not surprising that most favorable deals come from the same places in the which are the basis of projects. Venture funds of all amounts of assets under management use their geography as a point of differentiation, especially if they are located outside the Silicon Valley.

It will be interesting to see how this changes with time. Communication at great distances is a richer and more valuable experience. But despite this, it is worth noting that, after all, investors pay the most attention to their native markets.

Venture funds are another very profitable and stable area for investment. Here, the investor can often find the most profitable options for investing money, as well as the most attractive terms. Hypercube Ventures, as one of the examples of such funds, allows an investor to make deposits in the most promising companies and projects. Specialists of the fund choose the most attractive startups, so that investors do not spend their nerves and time in search of standing products. While you enjoy life, Hypercube Ventures works for your benefit.

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