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today entrepreneurship seems to have formed a kind of trend. In the past ten years, arguably a startup is blossoming, almost each city in the United States there are business people. Boulder, Austin, Chicago, Detroit, Atlanta, passat being and Provo, the number of startups of these cities has been on the rise. With the development of science and technology and the cloud infrastructure, the situation of “two young garage” (Steve jobs and Steve? Watts) is unprecedented relaxed: as long as there is a unique creative, pocket there are thousands of dollars, can venture from scratch, and use your product to test the market. Has long been a California, New York, and Massachusetts are classic business centre in the United States, but now the wind investment in other areas can be very good development.
although “entrepreneurship” is becoming more and more easy, but in addition to the above the three areas, will be found in other parts of the start-up size rarely continue to “grow”. According to CB Insights, according to a report released the latest company valuations across the United States more than $2014 in 500 million, 93% are located in California, New York, and Massachusetts these three areas. Since 2011, this proportion has been rising steadily from 83%. These three states for investment in gold wind accounted for 80% of the total amount of investment in gold wind, American vc volume is 66% of the total volume of all the year round.
to such imbalance of proportion, there are few possibilities to explain this. First of all, the in other markets to build a small-scale entrepreneurial teams, generally need to have a few engineers, a designer, there are several “salesman”, but if you want to expand the scale, the difficulty is very big, but want to retain talent in in addition to the core market of the region while maintaining steady and rapid development is also very difficult. Where does have excellent engineers and designers, but not every place has similar entrepreneurial culture, and in the well-known enterprises, has many potential employees are more doing some traditional work.
in the secondary and tertiary market area, lacked experienced talent in many fields, such as enterprise SaaS (software as a service). Well-known venture capitalists Chris Dixon has said in the interview to notice this problem in two big cities of New York and Los Angeles. He explains, in the San Francisco bay area, for example, enterprises can easily develop 50 to 100 employees, and these employees are mostly from the previous generation enterprises, relevant work experience, but in other places, there is no such advantage. Due to the level of experience, and lack of talent recruitment speed advantage, will bring great influence start-up company’s growth trajectory.
in addition to the talent, has a fixed cycle of boom and bust of mature venture market generally need different levels of organization knowledge, these knowledge need by people had two or three entrepreneurial experience, angel investors, consultants, service providers (lawyers and headhunting) is created, and only they can help the young company’s rapid growth, avoid making unnecessary mistakes. Time and experience that cannot be replaced, there is no shortcut entrepreneurship, build this hard-won knowledge base needs a gradual process. Although some experienced venture start-ups and consultant for some daily work instruction, but this and have professional guidance in the company or not the same.
in the entrepreneurship, we have to admit that there are some successful examples exist. Such as the United States of Provo, Utah, there are many big technology companies have focused on trends, there include Qualtrics, Domo, and Insidesales.com, the company’s current valuation of more than $1 billion. Since 2011, Chicago has become a holy land, there is a company, Grubhub, as well as the Braintree, valuation of these companies are also more than $800 million. And Arkansas Acumen Brands, the company, they recently received $93 million in financing, the financing account for 90% of the total funds in the past decade the state), must have their valuation should not be too low.
while the companies performance is good, but in addition to the major business and in other parts of the company want to scale is very difficult. Entrepreneurship in America today is the big picture of frustrating, but this is the past more than 20 years of thinking, innovation, and after the failure of a true reflection. Today’s success, is to rely on yesterday’s blood, sweat, and tears. Not one of the region can become entrepreneurial lucky forever, in the same way, if there is no talent, investors, consultants, service providers of ecosystem, cannot form the mature market, it will take time.
in California, New York, and Massachusetts in other business areas, there is no enough long entrepreneurial culture. They lacked a lot of entrepreneurial important factors, such as a world-class university, a people happy life environment, as well as the possible threats in the health degree and financing environment. Along with the development of the time, a lot of in secondary cities startup entrepreneurs will eventually move to a larger business centre.
in the foreseeable future, the risk investment will continue to flow to more places, the United States is a country full of opportunities, once the market cultivation, or entrepreneurs had the best “equipment”, we will see quite a lot of business success. Nothing’s absolutely, of course, some start-ups are likely to succeed in some obscure small place, be that a big fish in a small pond.
maybe you are one of the lucky ones, but this is minority after all.