Tag Archives: venture capital

U.S. cities are attracting a lower percentage of startup capital

Several surveys of global innovation have noted that the U.S. innovation edge is slipping, but until now they have not pinpointed where the U.S. share of global tech investment is going and possible reasons why.

A recent report detailing which cities today are attracting the most venture capital, Rise of the Global Startup City, states that the U.S., while still a lead player, is no longer the epicenter of all things new and  technological. Other cities are attracting a growing share of the venture pie, especially those in China.

“America’s long-held singular dominance of startup and venture capital activity is being challenged by the rapid ascent of cities in Asia, Europe, and elsewhere,” reports the study. “While the United States remains the clear global leader, the rest of the world is gaining ground at an accelerating rate.”

The reasons for the shift are complex: better access to data and computing power; local talent that cannot easily emigrate to the U.S. – or no longer wishes to  – and soaring real estate prices and salaries in established technology centers like Silicon Valley, New York and Boston.

Inhospitable Environment

Another reason not mentioned in the “Global Startup,” which was commissioned by the Center for American Entrepreneurship, is the inhospitable environment for U.S. IP rights, especially patents. The U.S. has fallen into an abyss where most IT patent rights are uncertain and virtually impossible to license, creating disincentives for both investors and tech companies.

At the same time, China has flaunted an increasingly plaintiff-friendly patent system that is more welcoming to innovators and foreign participation than a decade or two ago. Also, a decade or so ago, cities like London, Berlin and Delhi were barely a blip on the VC radar. Now they are serious players who want to grow.

For the full report, “The Rise of the Global Startup City, go here.

Source: Richard Florida/Ian Hathaway

LES members have until Monday to vote on business plan competition

FThe LES Foundation International Business Plan Competition Members’ Choice award will conclude on Monday, April 25. LES members who have not voted still can.

Competitor videos can be viewed and rated here by using the star system (5 stars being best).

Votes are logged as soon as you click on the stars – five stars being the highest. You may return to the page and change your vote, if you wish. It is not necessary to give a rating to all of the teams.

The online voting has been extended to Monday, April 25th at Midnight PDT. The winner will be announced during the LES 2016 PanAm Meeting.

FULL DISCLOSURE: Your intrepid IP CloseUp reporter, Bruce Berman, had the privilege of mentoring two of the finalists, Guardian Sensors from Austin, TX and Fruity-Cycle Project from Uganda.

Both businesses are led by bright young entrepreneurs with good, IP-influenced business plans. Please take a moment and vote!

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Image source: lesusacanada.org

 


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