J. D. Vance is known for having authored Hillbilly Elegy a book about the experience of growing up in the post-industrial Midwest as well as his escapade. Steve Case, on the other hand, is the co-founder of American Online. The two began working together this year in Mr. Case’s investment firm located in Midwest. They aim at exploiting the promising start-up. According to information that was released in a filing with the Securities and Exchange Commission, the firm that is known as Revolution intends to raise at least $100 million for the fund’s investment. Mr. Vance and Mr. Case are not the only people seeking investment opportunities in Midwest area. About four years ago, a venture capitalist in Silicon Valley known as Mark Kvamme opted out of Silicon Valley to pursue tech investment in Midwest heartland.
Even though his firm experienced a slow start, he was able to raise $550 million and invest in at least 26 companies. The firm predicts that the middle of America is proportional to the rich in the market, new business ideas as well as upcoming entrepreneurs. There is a belief that Midwest is not tapped yet it is the remedy for the tech market on the West Coast. The West Coast has faced a lot of influence from huge companies in terms of power and money. Renowned tech companies such as Microsoft, Apple, Amazon, and Alphabet are the most valuable companies in the country. The coast is also concentrated with venture capital which is crucial in fueling new enterprises. The National Venture Capital Association revealed that more than 50 percent of the venture capital spent in the United States goes to companies located in California.
When Mr. Kvamme and Chris Olsen decided to focus on Midwest in the year 2013, they were faced with skepticism. The situation has however changed as investors see the real opportunity in this area. As of now, the major Midwestern cities have incubators and start-ups. Success has been leaped by a couple of startups among them CoverMyMed, a startup located in Ohio that sold its software for prescribing drugs to McKesson for $1.1 billion this year. The deal is indeed a rare one. By investing in the Midwest, one can combine opportunity and cost. Even as technology is transforming industries such as finance, health, agriculture among others, investors in Midwest believe that being close to the customers is of more importance than being near tech giants.