Article Title
Financing the Next Silicon Valley
Publication Title
Washington University Law Review
Abstract
Silicon Valley's success has led other regions to attempt their own high-tech transformations, yet most imitators have failed. Entrepreneurs may be in short supply in these “non-tech” regions, but some non-tech regions are home to high-quality entrepreneurs who relocate to Silicon Valley due to a lack of local financing for their start-ups. Non-tech regions must provide local finance to prevent entrepreneurial relocation and reap spillover benefits for their communities. This Article compares three possible sources of entrepreneurial finance—private venture capital, state-sponsored venture capital, and angel investor groups—and finds that angel groups have distinct advantages when it comes to funding innovation in non-tech regions. This entrepreneurial finance story is then supplemented by a “law and entrepreneurship” story—specifically, a look at securities laws that might impede optimal levels of angel group financing.
Recommended Citation
Darian M. Ibrahim,
Financing the Next Silicon Valley,
87 Wash. U. L. Rev. 717
(2010).
Available at: https://openscholarship.wustl.edu/law_lawreview/vol87/iss4/1