Forbes Magazine recently gathered information showing under-venture capital funded states in the US. We’ve written about how the midwest and southern parts of the U.S. underfunded here. Based on Forbes’ research, states between the coasts are not the only ones underfunded. Using data from the U.S. Patent and Trademark Office and PricewaterhouseCoopers, Forbes put together a rough measurement of the most underfunded states in America by subtracting the percentage of venture capital that states receive from the percentage of patents they produce. Fourteen of the top 20 most underfunded states are in the Midwest and South — geographies Chrysalis knows well.
Here’s the state ranking:
Most Underfunded States for VC
Measuring innovation isn’t easy and this data isn’t perfect. Patents are difficult to measure. According to this data, the coasts have all of the money, but they do not have all of the smartest people and business ideas. As technology begins to reshape industries like manufacturing and agriculture, some of the most promising startups will come from Middle America, which has cheaper real estate, a centralized location and an increasingly tech-savvy workforce.
As investors in companies based in the midwest and southern parts of the U.S., Chrysalis continues to believe there are tremendous companies being started and grown throughout the entire U.S. The innovation ecosystem has evolved greatly — making it easier now, more than ever before, to start and grow a company between the coasts. Venture capital has evolved, too and successful investors are less concerned about the company’s address and more concerned about the strength of the company itself.