Get All Access for $5/mo

Venture Capitalists Are More Likely to Help Startups They Can Visit Via a Direct Flight If you want more guidance for your company, it helps to be easily accessible.

By Laura Entis

Opinions expressed by Entrepreneur contributors are their own.

Shutterstock

Venture capitalists aren't a fan of layovers. That's the not-too-shocking takeaway from a new study, which finds that VCs more closely monitor startups in their portfolios accessible by direct flights.

The implications, however, are important: if your startup isn't connected to VC hotspots such as San Francisco, New York and Boston, you may miss out on crucial early guidance, the study suggests.

To determine the "direct flight" effect, researchers at MIT examined around 23,000 startups and more than 3,000 venture firms over the course of 30 years. They found a small, but noticeable, difference in startups' output once direct flights connecting them to their VC firms were introduced.

When compared to similar startups that lacked a direct route, these companies saw a 3 percent increase in granted patents. What's more, the study found that startups connected to their VC firms via direct flight were 1.4 percent more likely to achieve a "successful exit," i.e. an initial public offering or acquisition.

In a separate survey, the authors asked VCs if the introduction of a direct flight would increase their ability to monitor firms previously only reachable if layovers were involved. The vast majority -- around 86 percent -- agreed.

Related: Sesame Street Launches VC Arm to Influence Tech for Kids

Laura Entis is a reporter for Fortune.com's Venture section.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Side Hustle

The Side Hustle He Started in His College Apartment Turned Into a $70,000-a-Month Income Stream — Then Earned Nearly $2 Million Last Year

Kyle Morrand and his college roommates loved playing retro video games — and the pastime would help launch his career.

Science & Technology

Why We Shouldn't Fear AI in Education (and How to Use It Effectively)

Facing resistance to new technologies in the educational process is nothing new, and AI is no exception. Yet, this powerful tool is set to overcome these challenges and revolutionize education, preparing students and professionals for a future of unparalleled efficiency and personalized learning.

Business News

Apple's AI Has a Catch — And It Could Help Boost Sales

Not every iPhone owner will get to use the new Apple Intelligence.

Business News

Elon Musk Threatens to Ban Employees from Using Apple Products, Says Will Lock Devices in 'Cages'

The Tesla founder sounded off on X following Apple's 2024 Worldwide Developer Conference on Monday.

Business News

Y Combinator Helped Launch Reddit, Airbnb and Dropbox. Here's What I Learned From Its Free Startup School.

The famed startup accelerator offers a free course on building a business — and answers five pressing questions for founders.

Business Culture

You'll Always Have Anxious Employees if You Don't Follow These 4 Leadership Tactics

Creating a thriving workplace environment hinges on the commitment of company leaders to nurture and inspire their teams.