The 20-minute rule

It was nice to see L.A. County having a good quarter for venture capital funding, but its $252.8 million total for the July-September period was still nickel and dime compared with the Bay Area's $2.45 billion. (Even if you account for all of Socal the total is $710.6 million.) Silicon Valley remains home to the big venture capital action and the reason goes beyond who happens to have the next great idea or widget. The reason - at least a part of the reason - is that Socal is not in Silicon Valley. Craig Johnson, managing director of Concept2Company Ventures in Palo Alto, told the NYT that he knows a lot of venture capitalists who still adhere to the 20-minute rule. That is, if a start-up company is not within a 20-minute drive of the venture firmís offices, it will not be funded.


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Mark Lacter
Mark Lacter created the LA Biz Observed blog in 2006. He posted until the day before his death on Nov. 13, 2013.
 
Mark Lacter, business writer and editor was 59
The multi-talented Mark Lacter
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