New Brookings report examines financing technology start-ups in rest of America

The Brookings Institution has just issued a new policy report that examines initiatives across the country aimed at supporting the scale up of the technology and advanced-economy companies that inordinately drive the economy.

Titled “Beyond VC: Financing technology entrepreneurship in the rest of America,” the reports is focused on “regions that were previously anchored by sectors such as manufacturing and industrials” that sorely need more of technology start-up formation and growth.

“These metro areas have struggled to keep up with the large coastal cities that serve as hubs of innovation,” the report notes. “Significantly, this owes at least in part to their inability to attract financing for early-stage technology companies. To thrive, therefore, it is imperative for regional economies to overcome the funding problem and build local technology ecosystems to drive their local economies and provide good jobs.”

The report suggests leveraging innovation financing mechanisms sharply different from but also complementary to the high-profile venture capital model along with recent federal recovery and pending innovation programs.


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