Here’s my prediction. I thought I’d share with you my awesome theory. Don’t read this if you haven’t seen up to S8E5. And don’t read if you don’t want this theory rolling around in your head in advance of the show tomorrow (or today as it’s already late here). First, it’s worth saying that I’m really enjoying Season 8. Despite the hate on the internet—and granted, it’s the internet and so there’s always going to be hate—I think the writers, producers and directors have done a phenomenal job with this season.
Everyone talks about the dollars of investment that goes to the Big Three markets (Bay Area, NYC, Boston). According to the PwC/CB Insights MoneyTree™ Report of 2017, 67% of all investment dollars went to those three locations. Every week I read about another fund that is focused almost exclusively on the Big Three. Even in Jason Calacanis’ book Angel, the title of Chapter 5 is “Do You Really Need To Be In Silicon Valley To Be A Great Angel Investor?” The entire chapter consists of one word: “YES!!”
Everyone talks about that percent of dollars. But I find another number more fascinating: 11,428. That is the number of startups that received funding in 2017 not located in the Big Three. That’s 45% of the funded startups last year.
11,428 startups funded outside of the big three.
The corollary to that number is 15,124 — the number of startups funded in the Big Three. Corporations and VCs alike look at that and think, “I can reach 55% of the market by having offices in three cities.” And so they focus their efforts, and either ignore the Rest, or wait for the Rest to come to them. Frankly, many startups do, and I don’t begrudge either strategy. This concentration of efforts creates opportunity.
In what business can you ignore 45% of the market and hope to have a competitive edge?
All of the other markets — “the rest” — go largely ignored because reaching the other 45% is hard. Reaching a concentrated 55% is easier than a widely distributed 45%. Great businesses are built on solving hard problems. And so was Engage Here.
Imagine having scouts give you access to the best startups — the dark dealflow — from two dozen markets around the US. Imagine having access to that amazing robotics startup in Pittsburgh, the manufacturing systems startup in Charlotte, and the hottest blockchain startup in Austin. Yet, it goes beyond access. Sifting through 1,000 startups is hard, sifting through 11,000 is ridiculous.
Engage Here is a distributed scout network based on local relationships. Our secret sauce is the local community leader in each market. We partner with the boots-on-the-ground community builder who is out every day meeting startups. They see everything in their community because they’re the organizer and the consummate connector. If you were to move to their town, they would be the person that four other people would say, “have you met ______?” They are on our team, scouting startups, and sending the best our way.
Let’s be clear: Engage Here isn’t a technology platform; it isn’t a social network, it doesn’t require you to authenticate through your Google account and spam your contacts. Engage Here is built on the fundamental belief that relationships are the foundation of business. Relationships are at the core of everything we do.
To be competitive in this increasingly noisy and crowded space, you need an edge. You need to be able to reach down into the corners of the country, into the pockets of entrepreneurship rising up, and find the absolute best among from the crowd. We are a force-multiplier for your start efforts. We offer curated, dark dealflow from all pockets of the country.
The best part is that everyone stands to gain from your involvement:
- Startups get access to the people and companies across geographies
- Corporations get strategically-fitting introductions
- VC’s get scouts in two dozen markets
Join us and tap the 45% of the market you’re missing.
Here’s a freebie: the Daily Dealflow newsletter, featuring one startup each workday sourced from our network, from every corner of the country. Sign up here: https://engagehere.co/daily-dealflow/
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