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 the heartland. Year-over-year investment also is down 34% because of the pandemic.
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Story excerpt provided by TechRepublic.
Written by Alan Bernard.
Originally published May 13, 2020.