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In a previous post, I noted some data gathered by RedPoint Venture's Tomasz Tunguz on how the sector you startup is in affects your ability to raise a Series A round. 

Tomasz has crunched some some additional data on his personal blog, this time looking at how the location of your startup affects your ability raise capital. He looked at data on how startups from 12 different cities perform in the fundraising market.

Off the top of my head, I would have guessed for certain that there would be significant variations in success rates between cities, with startups from the real hotbeds such as San Francisco or New York. To my surprise, however, though there are some differences, the location of a startup's headquarters does not seem to have a huge affect on its' ability to raise capital:

 All of this would seem to indicate that if you have a quality startup, investors will be happy to work with you, no matter where you are located (Note: Danielle Morrill of big data analytics startup Mattermark has said the same thing). Indeed, just to take an example from the real world, I had recently interviewed JAMF Software, which has had massive success and traction as a leading MDM (mobile device management) startup focused entirely on Apple products. JAMF is based in Minneapolis - not exactly known as a startup hotbed - but they recently raised $30 million, and probably could have raised a lot more if they really wanted to.

Maybe the startup scene does not need to revolve around Silicon Valley after all!

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