Geographic Diversity

One of the most noticeable changes in the last few years has been geographic diversity. People’s priorities have changed, and where they choose to live has followed suit. The common thought was that you needed to be near a tech hub like San Francisco to be matched with resources to increase your chances of succeeding. Some people still want to be near these traditional tech hubs, but many have opted for other cities more aligned with professional and personal goals.

Geographic density was a big part of what made these tech hubs so powerful. It’s also why many venture capital funds were traditionally located in tech hubs. The closer you are to someone geographically, the more often you’ll interact with them—or at least have a chance to. More frequent interactions increase the flow of resources, knowledge, etc.

Geographic diversity is a big change in the start-up world. I suspect it will lead to big changes in venture capital. We’ll likely see more variety in the structures and operations of venture capital funds.

Venture capital is an industry that changes when it’s forced to, and I think geographic diversity will force big changes.