Venture Capital: What's a “Poor” State To Do?

Abstract

Available evidence suggests that South Dakota is one of only five states in the US that has no formal venture capital outlet, to either commit or disburse financing — no professional venture capital firm, no private or public or combination seed and start‐up fund, or bank Community Development Corporation. The absence of South Dakota in the disbursements list where 42 states and the District of Columbia are identified as receiving venture capital funds in 1990, is particularly telling. If South Dakota expressed a “need” for venture capital, the venture capital industry either felt no obligation to satisfy it or saw insufficient economic opportunity. Or, perhaps, South Dakota, and other similarly “disadvantaged” states, all yet to effectively express their need.

Citation

Tosterud, R.J. (1995), "Venture Capital: What's a “Poor” State To Do?", Humanomics, Vol. 11 No. 4, pp. 56-76. https://doi.org/10.1108/eb018769