Access to talented folks and smart capital certainly makes the process of starting up a company easier, and it may increase the likelihood that a startup will survive long enough to raise some money and build a sustainable business.
But does location have any bearing on the other end of the startup lifecycle, when founder and investor equity is looking for an exit by way of an initial public offering (IPO) or acquisition? It’s an important question for executive and investor stakeholders alike, and that’s what we’ll try to tackle here.
Crunchbase News has previously explored regional investment patterns and factors affecting exit performance. Our analysis of these trends include when startups are most likely to get acquired, whether time in the market or capital raised deliver better returns to investors, and, most recently, what might be driving up multiples on invested capital (MOICs) over time. But our investigations of startup location and exit performance have, to this point, been separate and apart from one another.
With all this in mind, let’s see what shakes out when startup exit metrics and location information collide.
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