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Small Towns, Big Money

Looking for capital? a new study shows that small towns might just be a VC paradise.

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This story appears in the January 2008 issue of Entrepreneur. Subscribe »

have , too. That's the finding of a recent Federal Reserve Bank of Boston study that sought to pinpoint cities outside the 40 largest U.S. markets with the most VC activity. While half of all U.S. venture capital is handed out by VCs based in and Boston, Fed Bank researchers Carole Carlson and Prabal Chakrabarti identified 20 smaller ("secondary") cities with thriving VC communities. Then they identified key traits these markets share that have helped them become hot VC markets:

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