The World Is Flat, and So Is the Future of VC
As innovation decentralizes, emerging tech ecosystems like Greater Appalachia are challenging old assumptions about where startups can thrive. A conversation with Mike Green from Mountain State Capital.
Venture capital has long clustered around a few key cities. Silicon Valley, Boston, and New York historically dominated startup finance, concentrating capital, talent, and infrastructure within tight geographies. But that dominance is eroding. Founders are building great companies from places that once sat far outside the venture spotlight, and investors are following.
What is driving this shift? A combination of factors: more equitable broadband access, post-pandemic workforce mobility, a rise in distributed teams, and targeted federal investment. Together, these forces are redrawing the map of venture capital and flattening the terrain on which innovation happens. The barriers that once defined who could build, pitch, or scale are giving way to a more level playing field, one where geography is becoming a variable, not a prerequisite.
Why Regional Markets Are Gaining Ground
The appeal of emerging innovation hubs is no longer theoretical. Across regions like Greater Appalachia, the Midwest, and the Mountain West, venture activity is rising. These ecosystems offer more than cost advantages. They often come with untapped talent, authentic founder missions rooted in local needs, and business models grounded in profitability from day one.
Investors like Mike Green see the opportunity clearly. In markets like West Virginia or Western Pennsylvania, he notes, valuations are often more rational and companies less encumbered by the hyper-growth narratives that define coastal fundraising. “There are a lot of good companies out there that just need access to capital and the right networks,” he says.
The Policy Infrastructure Behind the Trend
Public investment is playing a central role in supporting regional growth. Programs like the CHIPS Act, the Tech Hubs initiative, and NSF Regional Innovation Engines aim to stimulate technology commercialization outside the usual corridors. These efforts fund research institutions, support entrepreneurial training, and create the conditions for local innovation to take root.
Green underscores that government support is not a temporary accelerator, but a foundational part of innovation infrastructure. Especially in sectors like life sciences, where regulatory pathways and federal funding are critical, public-private alignment is a necessity.
Ecosystem-Building Without a Blueprint
Despite the growing momentum, building a durable innovation ecosystem takes more than a few startups and a regional fund. It requires mentorship, repeat founders, engaged universities, and a strong sense of community. These components do not materialize overnight. They are the result of long-term commitment and intentional network-building.
Green has seen this process unfold in Greater Appalachia. He points to the region’s research institutions and the organic emergence of founder networks as early proof points. But he also emphasizes that local stakeholders must step in to fill gaps, from early-stage capital to entrepreneur education. “You don’t have to wait for Silicon Valley to show up,” he says. “You can build it yourself.”
A Broader Lens for the Next Chapter of Venture
The decentralization of venture capital is not a temporary trend. It reflects structural shifts in how companies form, where talent lives, and how capital reaches founders. For investors willing to look beyond legacy markets, the upside is substantial.
Greater Appalachia is just one example. Across the United States and globally, smaller cities and historically underserved regions are producing credible companies with global potential. Recognizing that reality, and responding to it strategically, will be key for any investor or LP thinking long-term.
Venture’s future may not be where it once was. But it is already taking shape.
