Southern Roots vs. Entrepreneurial Success

I live in Atlanta. And I love it. I think our skyline outlined with Coke, Delta, AirTran, CNN, and ATT logos is magnificent. I also think the region still welcomes growth and innovation. Apparently, if I was a venture capitalist, I would feel quite differently.

A new article in our local paper (Atlanta Business Chronicle, February 6-12, 2009) touts that VC’s don’t feel us Georgians are worth their time OR their money. Top reasons why venture firms are turning away new businesses? Geographical distance, deal flow awareness, and finally…”a lack of entrepreneurial talent.” Questions about the “adequacy of Georgia’s management and entrepreneurial talents” were found in a recent poll of 156 firms in 24 states. It was also commented in the survey that “Georgians make enough in the small business to live modestly but not enough to attract true VCs”.

So why the long face VCs? Well, for starters, Atlanta has been lacking true entrepreneurs like Steve Jobs or Michael Dell for some time. There’s nothing our state has become known for entrepreneurial-wise. Another deterrent may be the influx of technology companies years ago during the tech boom. VCs stepped up, then lost out, and now they’re burnt out. That trend of “serial entrepreneurs” has now officially warded off VCs. Are there more reasons they are still turning away? Try “mediocre pitches” and a “focus on funding not development.”

The VCs seem to think us Georgians need to look to the Californiaian bootstrappers for some advice. Considering half of the survey respondents don’t feel Georgia even welcomes entrepreneurs…this next generation of entrepreneurs has its work cut out for them.