The Midwestern united states, often referred to as America’s Heartland is set to become one of the country’s technological hubs. For a long time, technology investors have flown over Midwestern states as they make their way to coastal hubs such as New York and San Francisco. Investors, shaken by the outcome of the 2016 election, are leaving the Silicon Valley with a mission to bring Silicon Valley-like job opportunities to Midwesterners.
The Midwest has been, for a long time, disillusioned from seeing gains from the American economic recovery pass them by. Trump’s triumph in the last election laid bare the disillusionment that these American citizens have had to endure. Tech start-ups, centred in the Silicon Valley and New York, have transformed — and even obliterated — industries and jobs. Trump’s election was a wake-up call in the Midwest. It’s time for Midwesterners to seed old manufacturing and rural centres that have been overtaken by the technology boom.
Lack of VC Interest
The Midwest United States consists of the farming communities, small towns, and large cities. Though images of the Midwest US focus on sprawling farmlands and flat plains, the region is also home to several big cities including St. Louis, Minneapolis-St. Paul, Cleveland, Detroit, and Chicago. Some of these cities have remarkable technology potential, but lack of proper venture capitalist interest and investment to take advantage of the situation have derailed the growth of the tech industry.
A survey commissioned by the National Venture Capital Association shows that 75 percent of venture capitalist money goes — including the capital that jumpstarted tech giants such as Google, Facebook, etc. — goes to tree states namely Massachusetts, New York, and California. Apart from the election of Donald Trump as president, the boomeranging of the Midwestern tech industry is driven by the high number of techies moving to the Midwest for family reasons or just to try something new outside of the Silicon Valley.