When you are selecting VCs to target in your first fundraising process their office location(s) should be a key consideration.

VCs that you expect to serve as your key advisors should be located close to your offices. Proximity makes them accessible, enabling you to meet with them for advice more often. Additionally, local VCs are more likely to be able to attend more board meetings in person, because they don't have to spend as much time commuting.

Aside from your core advisors, you should consider targeting VCs with deep networks in key regional industries. For example, if you are starting a new media company in Denver you may want a New York VC on you board who can open doors on Madison Avenue.

In sum, be strategic when targeting VCs. By aligning the geography of your venture investors you will get more value from the relationship.

Comments

[Gregg Armitage]

Hi Mark,
First let me say that your Entrepreneur's Guide To Raising Capital has been the most thorough and informative series I have found so far so thank you. In regards to this post, what if you have the opportunity and flexibility to anchor a company location after a series A funding round has been completed, with the input of the VC? Is this displayed flexibility an advantage or disadvantage for the entrepreneur in the eyes of the VC? Thanks so much.

[Mark Davis]

Gregg - thanks for the question. I'll make it into a post.

The short answer is that this flexibility is usually valued by VCs.
-Mark