Distance No Object?

VCs often tell me that it’s the quality of the company that drives the deal, not the geography. So is where you start a business really that important? According to Library House London is a magnet for new venture capital backed businesses despite the expensive rent and salaries. They point to the number of successful exits as a ratio to the number of deals done as an outcome measure. Apparently, in London the ratio is 2:3 whereas in the North the ratio is no more than one in four. Does this in any way relate to the geographic remoteness from the major financial market? One blip in this statistical argument appears to be the Emerald Isle where, albeit from a lower base, the ratio of exits to deals is one in two. Maybe it’s the Guinness that aids the deal making!

Is one way of breaking down these geographic barriers to utilise technology more? Connect has recently released a online portal, http://www.mydealmaker.co.uk/, designed to allow companies wherever they are to pitch their investment proposition whenever they want. The idea is that even if a VC can't find the time or the rail fare to come to our Investment Forum, they can at least take a looksee at the cream of the technology crop from across the region. Equally, entrepreneurs no longer have to wait for the next Forum to come around in the hope that they get a presentation slot. We look forward to our first online investment success and to improving our ratios!