A Huge Myth About Venture Capital Funding



When we think of easy ways of making money, venture capital seems to be the way to do it. If you look at all of the world’s youngest billionaires, they all seemed to make it the same way. Firstly, they had a good business idea. Secondly, they got some funding from venture capitalists. Thirdly, they raked in the money and are now living the lives that most of us could only hope to dream of. In reality, it is a little bit more complicated than that. We go over some of the more common myths floating around. The biggest myths, however revolve around the now legendary, and almost appropriately mythical place called Silicon Valley in California. Let us have a look at what one of the biggest ones is.

Dealing With Venture Capital is Easiest in Silicon Valley

If you go anywhere in the world, the impression is that the grass is always greener elsewhere. This is true of most people’s attitudes. Not only this, but they believe that the greenest place in the world, as it were, is in Silicone Valley. As the venture capital community appears to struggle to get funding in their own country or region, the belief is that it will be easier to raise funds in Silicon Valley. The reality is not this. In fact, it is absolutely no easier in Silicon Valley. Granted, it is true that there is a far higher concentration of venture capital firms there than anywhere else in the world. On the other hand, there are far more companies looking for funding there by that same token. This means that competition is very tough. Venture capitalists want to fund the best possible companies that they can find. This means that if you do not find funding where you are, you are no more likely, in fact you are probably even less likely, to get any funding in silicon valley. This is purely rational. Think of it this way. If you do not win your local beauty contest, what makes you think that you will win Miss Universe?

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