Originally published in Entrepreneur Magazine

By Jeff Harbach

Click below to watch the Video

As an Austin, Texas-based venture capitalist, I know the importance of building your startup in proximity to your key market (and even better if it’s a place with great barbecue).

While there is a high concentration of funding in Silicon Valley, it’s certainly not a natural hub for many markets that are ripe for innovation: agribusiness, autos and health care, for example.

GrowthX Founder Andrew Goldner took some time during a recent Kauffman Fellows VC Reunion Summit to discuss the benefits of starting up in places outside of the Valley, such as Chicago or Chattanooga. Play the video above to learn more.

Jeff Harbach is President and CEO of Kauffman Fellows.