Download this Paper Open PDF in Browser

Financing the Next Silicon Valley

46 Pages Posted: 29 Sep 2008 Last revised: 13 Oct 2013

Darian M. Ibrahim

William & Mary Law School

Date Written: September 22, 2008

Abstract

Silicon Valley's success has led other regions to attempt their own high-tech transformations, yet most imitators have failed. Entrepreneurs may be in short supply in these "non-tech" regions, but some non-tech regions are home to high-quality entrepreneurs who relocate to Silicon Valley due to a lack of local financing for their start-ups. Non-tech regions must provide local finance to prevent entrepreneurial relocation and reap spillover benefits for their communities. This Article compares three possible sources of entrepreneurial finance - private venture capital, state-sponsored venture capital, and angel investor groups - and finds that angel groups have distinct advantages when it comes to funding innovation in non-tech regions. This entrepreneurial finance story is then supplemented by a "law and entrepreneurship" story - specifically, a look at securities laws that might impede optimal levels of angel group financing.

Keywords: Silicon Valley, Entrepreneurship, Economic Development, Angel Investor, Venture Capital

JEL Classification: G24, K22, M13, O31

Suggested Citation

Ibrahim, Darian M., Financing the Next Silicon Valley (September 22, 2008). Washington University Law Review, Vol. 87, 2010; Univ. of Wisconsin Legal Studies Research Paper No. 1065. Available at SSRN: https://ssrn.com/abstract=1272957

Darian M. Ibrahim (Contact Author)

William & Mary Law School ( email )

South Henry Street
P.O. Box 8795
Williamsburg, VA 23187-8795
United States

Paper statistics

Downloads
669
Rank
31,120
Abstract Views
3,721