(Photo courtesy of Cory Popp)
Breaking: Startup success exists outside of the Bay Area and New York City. Analysis of First Round Capital’s track record says so.
The venture capital firm crunched the numbers for its first 10 years in the business and published the findings. Here’s what they wrote about location, a particular fascination of ours here at Technical.ly:
We thought location might make an equally dramatic difference, but we were wrong. First Round companies founded outside New York and the Bay Area are performing just as well as their peers based in those epicenters. Of the 200 companies we looked at for this, 25% landed outside these cities and, on average, have performed a slim 1.3% better than companies in the Bay and NYC. Again, this could be because investors price companies in NY and SF meaningfully higher to start with — but it’s heartening nonetheless.
First Round published this and nine other findings on a spiffy new microsite. It’s a revealing snapshot of the current state of tech entrepreneurship and a great resource, too.
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