LC025: Fundraising when outside VC Hotbeds

launchpeer - June 29, 2018 - 0 comments

Today’s question:

Today’s question comes from Garett. There’s not a lot of investors located in the area I live in. Is there a way for a startup in the middle of the country to attract those investors or is there a different way to go about raising money?

Jake’s answer:

For startups outside of the coastal areas where money seems to flow very freely, it’s important to do what you can to bring attention to your startup, especially when it’s one that’s already showing revenue and profitability.

Find Investors in your Area

There aren’t many places where there aren’t any investors. They may have fewer than the coasts, but there are still some available. Find those places in your area that have a collection of these investors. Whether it’s an accelerator program, angel group, or conferences, you should be able to find investors near you.

Investors from all over the country like to vacation in other areas. Get yourself to events or conferences in your area that are larger yet still within driving distance from you where investors from the coasts or other parts of the country will be present. You should position yourself as a diamond in the rough to these investors and let them feel like they have an inside track on your company.

Investors Want to Make Money

Investors are starting to realize that there are a lot of startups outside of major metro areas that can and deserve to raise money. A lot of press has come out lately that highlights the flyover states and rise of the rest, so be sure to piggyback off of that as much as possible.

Reach Out to Investors Directly

You can also reach out to the investors in major metro areas directly. You need to work to get on their radar. You can’t blame the investors outside of your area if they don’t know you exist. One caveat with raising money from investors in other cities is that they may want you to move to that city if they give you capital. So make sure that you know what you’re willing to do if the opportunity comes up.

You need to work to get on their radar. You can't blame the investors outside of your area if they don't know you exist. Click To Tweet

I don’t believe this is a bad thing for local communities as long as the founders remember where they came from. It can really bolster the community and just remember to come back and help out founders from your local area to give them some of that leverage.

Every startup raising money has hurdles. If you’re not in a major metro area, then your obstacle is proximity to investors. It’s not necessarily better or worse than those in the metro areas, it’s just different. Every hurdle you get over is a lesson you learn to become a great company owner, not just a startup founder.

One way we can help with that is to go to to match up with investors who are in your area or who are a good fit for your startup.

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