As we sit here, perhaps imagining a founder perched somewhere sunny in Miami, Florida, wondering how to best fundraise for their company when situated outside of a traditional tech hub like the Bay Area. But fear not! A recent panel discussion at TechCrunch Disrupt shed light on this very topic, featuring Mike Asem from M25, Elizabeth Yin of Hustle Fund, and Accel’s Rich Wong.

The Rise of Remote Work and Emerging Markets

The consensus among these venture capitalists was clear: remote work has accelerated the trend of VCs looking at emerging markets, founders, and companies throughout the nation. Social media, particularly Twitter, has also made it easier to connect with people. To some, sliding into an investor’s DMs can be just as legitimate as diving into one’s network for a warm intro.

The Power of Twitter in Fundraising

Elizabeth Yin pointed out that her team at Hustle Fund noticed a couple of years ago, when analyzing their own analytics, that most of their deals came through Twitter. "If I look at my portfolio, my companies who are active on Twitter actually do have an easier time raising money because investors feel like they know them," she said.

However, Rich Wong cautioned that it’s not just about where you connect with someone, but rather whom you’re connecting with. He emphasized the importance of meeting people in person and building a strong online presence takes time and energy, which may not be beneficial for all founders and companies.

The Role of Social Media in Emerging Markets

Wong highlighted the importance of finding influential people and networks within a space, which may not necessarily be through social media. However, he acknowledged that social media plays its part in connecting people from across the world, leading to potential in-person interactions.

Some top emerging venture markets include:

  • The U.S. Southeast (home to Miami and Atlanta)
  • Austin
  • Chicago (the leading startup city in the Midwest)
  • Los Angeles
  • Seattle

Flights connect these places, but so does Twitter. Social media makes it easier to raise pre-seed, angel, and seed rounds. However, as a company scales, investors may start looking for it to settle down in a suitable location with proper resources.

Gaining Momentum and Expertise

Yin suggested taking advantage of the rise in Zoom calls and booking as many investor meetings as possible to spread word about your company. Wong recommended connecting with experts in your startup’s sector who can vouch for your company to VCs, highlighting technical expertise without relying on metrics.

Emerging Markets on the Radar

  • Elizabeth Yin: paying close attention to international markets
  • Mike Asem: focused on the U.S. Southeast and Midwest
  • Rich Wong: interested in Los Angeles and Seattle

These markets offer opportunities for founders and companies looking to raise funds outside of the Bay Area.

Conclusion

Fundraising is a challenging process, but with the right strategies and networks, it’s possible to succeed even outside of traditional tech hubs. This panel discussion highlighted the importance of social media, networking, and building strong relationships with investors. As the startup ecosystem continues to evolve, staying informed about emerging trends and markets will be crucial for founders looking to raise funds.

Additional Resources