Invest Local

In the front door and near the stage, there are several exhibition boards with an interesting photo on it shows where to invest:

This is an interesting fact that there is a significant investment trend is

Most part of capital is invested in California, New York, and Massachusetts

Which means that other places actually are nearly ignored in terms of investment and investors tend to only look at those so-called “Golden Area”. That why Colorado is special and is cultivating the community which helps local businesses and startups to grow and looks for impact as well as return.

Because people often saying,

You can either invest for return or invest for impact.

But Colorado is building a community that integrate both side.

There are two major reasons that make this happen,

  • More and more Investors focus on investing in local
  • Entrepreneurs thrives locally

Challenges faced when investing local

Different in Talents

Often times, there is no different in quality of entrepreneurs from different places. But what is different is the need of education, here we have talents, but they are not the same with entrepreneurs in New York or California.The entrepreneurs here need some education. Not only in research area since some of entrepreneurs don’t do their home work before approach to investors.

But in a broader sense, entrepreneurs are not only finding investment, but fining partners. Let’s say, you can raise ten thousands dollars doesn’t necessarily means that this investor is right for you. And the key is, whether can this investor help you beyond write a check.

Limitation of funding

Often times, the foundation or investor in midwest don’t really have that amount of money to invest in. So investors need to spend long time in finding enough capital partners. Normally it takes 9 investors in each round and the amount of time cost in huge, this increase the local investment.

Not like at coast, once you get a big name to invest, other investors will follow them quickly without hesitation.

Panel

Lack of ambitious

Just imagine that there is a line which represent goals/ambitious, here are different positions that entrepreneurs locate compare between local entrepreneurs and entrepreneurs at coast.

  • Coast: way above the line, reasonably ambitious
  • Central : below the line. So local investors need to help entrepreneurs to see a bigger picture

There is no difference of quality of entrepreneurs, it is just that investment is the whole picture, not just an idea.

Sustainability, Self succulency

  • Coast: Entrepreneurs often bootstrap up front, so when they begin to raise money, their companies are already profitable, this makes investors easier to make the decision to invest on them.
  • Midwest: Breakeven is already nice when raising money.

Because investors look for a real business, and often times they don’t want to put all the eggs in the same basket, so if there are 10 suitable companies, investors will invest in 10 and since this increase the likelihood of success, and this is more practical.

Suggestions for Entrepreneurs

  • Find mentors, get trained. Specialty and knowing basic info in vital.
  • Eco system doesn’t appear from no where, it happens with relationships, friendships, and etc. So building relationships, communities help entrepreneurs moving.
  • Collaboration, open communication.



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