Second Annual Rise of the Rest Summit Recap
“Silicon Valley Is A State Of Mind, Not A Place”
Steve Case, JD Vance and the Revolution Team just wrapped up their second annual Rise of the Rest Summit. This year, the $150M Rise of the Rest Seed Fund is focusing more heavily on the regional investing community. They’re bringing together investors to discuss deal flow, best practices, opportunities and obstacles in supporting and investing in Rise of the Rest entrepreneurs.
The 125 attendees represented investors and builders of entrepreneurship ecosystems from 57 cities across the country. The annual Summit is an opportunity to convene a cross-section of those stakeholders to reconnect with one another, exchange ideas, drive collaboration and give leverage to those left out of the traditional VC/startup conversation.
The first startups to receive an investment from the Rise of the Rest Seed Fund represent cities across the country from Pikeville, KY to Columbus, OH to Salt Lake City, UT. These investments are further proof that there are compelling startups starting and scaling outside of Silicon Valley, New York City and Boston.
“The next great investment firm isn’t going to be built in Silicon Valley.” — Drive Capital GP, Chris Olsen
Since 2014, they’ve visited 33 cities on the Rise of the Rest Road Trips, identifying emerging trends and connecting with regional leaders. Below are my top takeaways from the Summit categorized into five topic areas:
Regional Advantages And Opportunities
- One successful startup can change an ecosystem.
- Regions have unique assets, lower cost structures and support from state.
- Politics is local and investing is local.
- We need to partner with the best regional investors that have connectivity.
- You can’t just have an idea. You need capital, especially in Rise of the Rest cities.
- Topophilia
- You have a voice in Rise of the Rest markets.
- Midwest has local entrepreneurs with global solutions.
Fundraising
- Three ways to ask for money: philanthropic contribution to something they’re connected to, political fundraising for presumed access to someone and a business venture for a return.
- Persistence and follow through is important.
- Learn how to verbally communicate and write.
- Know what you’re talking about and make sure you actually answer their questions.
- Be persuasive.
- Geographic concentration matters at the Seed stage.
- Second generational wealth don’t always make the best LPs.
- Draw a circle, then work your way down in a spiral to your LPs.
Partnerships
- Structure plus process matter to deploy capital aggressively. We rely on our investment partners to help us achieve our goals.
- You have to put money in the room to get everyone interested.
- Leverage ecosystem expatriates.
- Capital (eco)system is National.
- Build relationships with follow-on investors on the coasts.
- You need to stand on the shoulders of giants because it’s capital intensive.
- Partner with corporates for knowledge transfer.
Diversity And Inclusion
- Need to build more non-VC solutions.
- Move the new majority from the margins to the main stage.
- Change the narrative.
- Two big opportunity gaps: broadband and digital skills.
- Shouldn’t have to explain why it’s good to invest in Black and Brown founders.
- Diversity has to be intentional.
Philanthropy And Impact
- Geographic overlay on venture capital investment is a good opportunity for social impact and ROI.
- We have to be more thoughtful in founding real businesses.
- Don’t wait til your old, do something now. Adopt a cause and make your money useful.
- Being an entrepreneur is a great thing, but do it for the right reasons.
This spring, the bus tour will make stops in Birmingham, AL, Chattanooga, TN, Dallas, TX, Louisville, KY, and Memphis, TN to showcase emerging startup ecosystems and invest $500,000 from the Rise of the Rest Seed Fund ($100,000 will be invested in a local startup at each stop). Click here to learn more about Rise of the Rest Road Trip with Steve Case.
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