Place, Policy, & Partnership Beyond Silicon Valley
Last month, we gathered more than 150 investors across 42 states with more than $180 billion in assets under management to explore new frontiers in regional investment. Our inaugural Beyond Silicon Valley Summit was timely for several reasons. First, 2022 marked ten years of Rise of the Rest — a decade-long commitment to closing the funding gap between coastal tech hubs and rising cities, creating a more inclusive entrepreneurial future. Second, the gathering came on the heels of a pivotal year in venture capital. One in which the proportion of seed and early-stage capital invested in Bay Area startups fell below 30% for the first time in more than a decade. Our agenda celebrated these milestones and dug into how place, policy, and partnership factored into the entrepreneurial equation. Below are a few of the many insights gleaned.
The conversation: Market outlook and opportunity with former U.S. Representative, former presidential candidate, and (current) Revolution Senior Advisor, John Delaney
The takeaways: Decarbonization is the biggest business opportunity for the next generation; reinvigorating the innovation landscape and maintaining fair and free elections are crucial to preserving America’s competitive edge.
The soundbite: “I started as an optimist and remain an optimist about this country. This is an extraordinary place, and you shouldn’t let anyone tell you otherwise.”
The conversation: Transportation and transformation with Secretary of Transportation and former South Bend Mayor, Pete Buttigieg
The takeaways: Infrastructure, such as broadband, public transit, and safe roadways, are crucial to the rise of startup ecosystems; there is just as much (if not more) adventure and opportunity in underestimated places as there is in coastal hubs; Middle America needs more people who get out, come home, and plug back into their communities.
The soundbite: “I don’t remember anybody ever telling me that success entailed getting out of South Bend, but I remember getting that message indirectly all over the place. So by the time I was 18, I knew that I had to get out, or at least I thought I had to get out…and that’s what I did. And the further away I got, the more I realized I was actually from somewhere.”
The conversation: Place matters: a panel on industry trends and geographic hubs
The takeaways: There are incredible investment opportunities and industry experts in places with proximity to specific verticals; from Nashville to Chattanooga to St. Louis, the Heartland is brimming with innovative ideas and entrepreneurs.
The soundbite: “I think there’s an opportunity for ‘rise of the rest’ funds to make an impact by looking inside of their own cities and states to find everyday problems and solutions.” — Marcus Whitney
The conversation: A Long Conversation on investing in something and somewhere new
The takeaways: Of the 150 investors attending the Beyond Silicon Valley Summit, 64 had backed a company in a city where they’d never funded one. With the Smithsonian Arts + Industries Building as a backdrop, eight of those investors spoke to how they got plugged into a new startup community and why a wider aperture makes for a more diverse and high-yielding portfolio.
The soundbite: “We realized it was silly to focus only on Southern California when there’s innovation happening all over the U.S.” — Paul Bricault
The conversation: From DC to VC: perspectives on policy, big tech, and innovation with former Bush & Obama Admin Official and eMerge Americas CEO, Felice Gorordo, and former Obama Admin Tech Official and Springbank Collective Founding Partner, Elana Berkowitz
The takeaways: Political campaigns and presidential transitions are, in many ways, just like startups; government alumni are assets to companies because they read the fine print.
The soundbite: “Policy is perceived as slow and bureaucracy-filled, but it’s also a massive business opportunity.” — Elana Berkowitz
The conversation: How we built it: stories from six investors and ecosystem builders across the country
The takeaways: Regional funds are innovating in ways that draw, keep, and grow startups, talent, and entrepreneurial communities.
The soundbite: “We got rid of the traditional curriculum and focused on the startups we were supporting, letting them guide us as an organization rather than the other way around.” -Lakshmi Shenoy
The conversation: American Reboot with former U.S. Representative, Will Hurd
The takeaways: To meet the era-defining challenges of the 21st century, politicians and entrepreneurs must rise to the occasion; AI will play a major role in shaping American competitiveness; doubling down on the communities we represent will help keep our democracy vibrant.
The soundbite: “Democracy is fragile — it has always been fragile, and will always be fragile — but it works because of Americans’ ability to do different things in different places.”
The conversation: For What It’s Worth — a candid discussion on ESG, impact, and outcomes with Case Impact Network CEO, Jean Case, and Columbia University Adjunct Professor, Howard Buffet
The takeaways: We have a unique opportunity to use capital to achieve positive financial returns and to help solve some of our world’s greatest challenges; If you’re confused by environmental, social, and governance criteria, you’re not alone; to generate long-term change, we need to rally around clear, consistent systems that inject more transparency, measurement, and standards into ESG investing.
The soundbite: “Doing good does not excuse us from doing better.” — Howard Buffet
The conversation: Breaking the mold in venture capital: fund founders forging a more inclusive path
The takeaways: Historically, VCs haven’t taken the time to look beyond their circles. That’s led to significant demographic and geographic disparities in funding and missed opportunities to back great founders and companies — opportunities we’re beginning to seize.
The soundbite: “Underfunded founders don’t need advice; they need capital.” — Samara M Hernandez
The conversation: Partnership through policy: insights for VCs from Director of the Loan Programs Office of the U.S. DOE, Jigar Shah and Former D.C. Mayor and current MaC Venture Capital Managing General Partner, Adrian Fenty
The takeaways: Local government plays a key role in attracting and retaining entrepreneurial talent; private and public partnerships are necessary for action on global-scale issues such as climate.
The soundbite: “We need investors with public sector experience and government officials with private sector experience to innovate within their systems.” — Jigar Shah
