Posted on 12/08/2017 7:27:53 PM PST by ameribbean expat
J.D. Vance, author of Hillbilly Elegy and now a colleague of Case's, explains, “People tend to follow their networks. While the network in Silicon Valley is obviously something that is great, it can also have an exclusionary effect that prevents investors from looking at and finding opportunities that exist outside of their networks and outside of their geographies.”
Case believes this bias creates opportunity. In an increasingly interconnected and digital world, startups in these smaller cities (think Baltimore and Buffalo instead of New York and San Francisco) can represent extremely attractive investments by stretching investment capital further, standing out in the war for talent, and being better positioned to tap local resources for help. Others seem to agree. This week, Steve Case’s investment firm, Revolution, announced a $150 million Rise of the Rest Seed Fund whose primary goal is to invest greater amounts in these under-represented geographies.
The announcement got considerable press since, as the New York Times noted, “All told, it may be the greatest concentration of American wealth and power in one investment fund,” with investors including, but not limited to, Jeff Bezos (Amazon), Sara Blakely (Spanx), Eric Schmidt (Google), Howard Schultz (Starbucks), David Rubenstein (Carlyle), John Doerr (Kleiner Perkins), Henry Kravis (KKR), and Ray Dalio (Bridgewater).
(Excerpt) Read more at mailchi.mp ...
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