One of the questions I am most often asked is how to raise capital in North Carolina (or some other place that does not have many venture capitalists [VCs]) or whether the company should just give up and move. Until recently, the only advice I could give was “Keep plugging away and once you get traction you will be more attractive to non-local investors.” But given the success—some would say dominance—of game companies outside the San Francisco area, I have a more positive outlook. A recent blog post by Mark Suster also does a great job of providing tactical advice on how to raise money if you are not located in a major VC area.
Suster, a serial entrepreneur who is now a partner at GRP Partners, provides a lot of practical suggestions that improve your chances of raising capital. Suster points out that yes, it is easier to raise money if you are in a major VC center (San Francisco, New York, LA or Boston), and if you do not have a strong tie to the local area it would be easier to raise capital if you relocate. That said, he pointed out that some great companies have raised large sums outside these regions and provided some very useful tips for doing so. Continue reading “Raising money outside of major VC centers”