The Geography of Innovation: Why So Many Are Left Out, And What We Can Do About It

By Gregory Shepard

Nearly 80% of venture capital in the U.S. flows to just three cities: San Francisco, New York, and Boston. That means thousands of cities, towns, and rural communities are left to fight over the remaining 20%. This isn’t just an imbalance, it’s a blind spot. Because innovation doesn’t only come from tech bros and bay views. It can come from farms, factories, and forgotten zip codes.

According to the Kauffman Foundation, startups are responsible for 100% of net new job creation in the U.S., not big corporations, not established giants. Yet the infrastructure to support these startups is often missing outside major metro areas. In fact, only 1% of all VC-backed companies are located in rural areas, despite rural America accounting for nearly 20% of the U.S. population.

I’ve spoken to local governments, economic development boards, and regional program leaders across the country, from Appalachia to the Southwest. The pattern is heartbreakingly consistent. Talent is everywhere. But access is not. There's no shortage of dreamers, builders, or problem-solvers. What’s missing is structured support, mentorship, capital pathways, tactical guidance, and exposure to scalable models. In short, the ecosystem is missing.

“Innovation doesn’t come from the center,  it comes from the edges,” I often say. And history backs me up.

Spanx was founded in Atlanta.

Mailchimp grew into a global giant without a dime of venture funding, also from Atlanta.Qualtrics started in Provo, Utah and sold to SAP for $8 billion.

ExactTarget, acquired by Salesforce for $2.5 billion, came out of Indianapolis.

Even Walmart started in Bentonville, Arkansas.

These aren’t outliers. They’re proof.

A 2023 Brookings report found that "rising star metros", places like Chattanooga, Boise, and Tulsa, are increasingly drawing tech talent and entrepreneurs due to cost of living, lifestyle, and growing local ecosystems. And initiatives like StartUs Insights and TechStars Rising Stars are further evidence that the center of gravity is shifting.

Yet, for every town with momentum, there are hundreds being left behind. And not because they lack the spark,  but because they lack the system.

That’s why I built StartupScience, to provide that missing system. To offer startup playbooks, capital guidance, mentor tools, cohort management, non-dilutive resources, and platform-level solutions for founders and the programs that support them. We’ve worked with hundreds of programs globally and serve thousands of founders, many from overlooked and underrepresented places.

Startup success doesn’t require a Silicon Valley address. It requires access to the right knowledge, tools, and capital at the right time. We help regions build that infrastructure, from curriculum to community to capital pathways. With partners like Fulbright Canada, the National Black Chamber of Commerce, Angel Capital Association, and Junior Achievement, we’re creating a new kind of map. One where the center of innovation isn’t a place. It’s a mindset, and it can happen anywhere.

It’s time for a more inclusive future,  one where a kid in rural Iowa has the same chance as a Stanford grad in Palo Alto. Because the next great company could come from anywhere. We just have to be bold enough to build the roads that lead there.