The imaginations of entrepreneurs are unlimited. But the data show that the imaginations of investors who fund startups seem to be very limited. Half of all the venture capital in America goes to just two places: the San Francisco Bay Area and New York. It’s worrisome to many that entrepreneurship funding isn’t getting to a broader section of the country.
Venture capitalists have long been criticized for their relative lack of support for startups founded by women and minorities. Now there’s an emerging conversation about another kind of diversity problem: geographic diversity. The topic is hotter than ever, with big questions swirling after the election about how to create jobs and economic growth across America, not just in a handful of thriving cities. It’s a message that’s a key theme for people as different as President Trump and Steve Case, the billionaire tech investor and AOL co-founder.
An example of a young business that’s part of the movement to build startups in a broader range of cities is LeagueSide, based in a Philadelphia co-working space. The company matches up national advertisers with youth sports leagues around the country that are looking for sponsors.
Big national companies are eager to get their names on kids’ jerseys. But it’s hard for a youth sports parent to know how to even reach a Verizon or New York Life Insurance. LeagueSide fills the gap. The idea is that youth sports leagues get access to much-needed funds, advertisers reach potential customers and LeagueSide takes a cut.
The co-founders said revenue is growing and outside investors have put in $800,000. The company has been hiring, and it’s up to eight full-time employees. Someone whacks a gong in the office whenever the company…