In a multiyear shift that could portend a long-term trend, billions have flowed into startups founded in the middle of the country.
For middle America, the 25 states that sit between the Rockies and the East Coast, easy access to venture capital has long been a dream just out of reach. Traditionally, venture capital funds have largely ignored this section of the country in favor of startups on the coasts.
No more. According to a new report, “State of the Mighty Middle Report,” from Crunchbase and Dundee Venture Capital, over the past decade investments grew to $20 billion in 2019 from $5.8 billion, a 13% compounded annual growth rate (CAGR). Even with the COVID-19 economic lockdown in full swing, first quarter 2020 investment was $2.5 billion. As would be expected, this is down from the fourth-quarter of 2019 where investors poured $4.7B in early- and late-stage companies in