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Why Venture Capital Is Thriving Beyond Silicon Valley

Preqin’s recent report Markets in Focus: Alternative Assets in the Americas found that alternatives‘ assets under management (AUM) total $7.56 trillion in the region. With alternative assets continuing to evolve across the Americas, Preqin explores the important trends set to drive future growth — from innovation to ESG — and includes exclusive commentary from a host of industry experts who provide keen insight into this sprawling space.

For views on how venture capital supports the innovation ecosystem, Preqin interviewed Kate McRoskey, Managing Director at First Republic Bank, to understand the dynamics of entrepreneurial communities. As more new innovation economies pop up around the U.S., Kate explains the ingredients behind their success.

How has the venture community gained momentum across
the U.S.?

Venture capital is a collective, community-oriented business. There’s a network effect in this community: When entrepreneurial talent meets capital in one location, supported and nurtured by specialist service providers, this catalyzes what we call the “innovation ecosystem.” This kind of community is by no means unique to Silicon Valley or New York.

The market in Los Angeles has become a tremendous success for investing across the full venture stack. The idea that LA is just for micro investing has been blown out of the water by the growth and attractiveness of the local community. And the data supports this success: Preqin Pro has recorded $8.9 billion worth of venture deals in 2021 for LA-based companies.

Read Kate’s full interview here.

The content of this publication is for information purposes only and should not be considered as legal, financial, accounting or tax advice, nor as an investment recommendation or an endorsement of any investment fund. First Republic Bank makes no representations, warranties or other guarantees of any kind as to the accuracy, completeness or timeliness of the information provided in this publication. You should consult with your own professional advisors to fully understand and evaluate the information provided in this publication before making any decision that could affect the legal or financial health of you or your business.

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