Interview: VC Life Outside Silicon Valley

This post also appears on Pardon the Disruption.

I had the opportunity to interview Matt Rightmire of Borealis Ventures, an early stage VC firm based in New Hampshire.  Matt left the entrepreneurial community in Silicon Valley to join a venture firm in NH's Upper Valley -- a move some might not expect from a veteran of Yahoo (he joined them in 1995) and other startups.  He's a smart guy with a lot of interesting things to say.  Highlights are below, along with a link the MP3 of his interview.  The complete transcript appears at the end of this post.

Why did he do it? "At a certain point in life, there's more to what you're doing than work."  He explains that he and his wife wanted their kids to go to school somewhere other than Northern California.

What does he think of Silicon Valley?  First, Matt notes that the culture of Silicon Valley attracts lots of smart people and capital.  But, he says, "I think people have to recognize ... that there are elements of that culture that ... balance out those positives."  He adds, "I think people's priorities are a little skewed, and I think somtimes that impacts some of the business decisions that are made" in Northern California.

What's the difference between East Coast and West Coast VC's?  "I think it's much harder to find capital available, back here in the east, just because of the numbers."  Matt also says there's a difference in the types of people who become VC's on each coast.  In California, "A lot of them have played the role of early stage start-up founder" while in the Northeast, "More so, they come from financial industry backgrounds. They haven't worn the entrepreneurial hat."

Where should budding entrepreneurs start their companies? Not surprisingly, Matt says "If I liked the idea, I'd say, 'you can start it right here in my office.'"  Otherwise, each entrepreneur has to judge the individual circumstances for their company and idea.

What is different about the Borealis approach?  Matt and his partners like to say they are different from other VC firms, and from what I've seen (at least from a distance) they are.  Their philosophy is to get actively involved with early stage companies and try to take them to the next level, not just with capital, but with brainpower and elbow grease.  Matt explains: "Both of those things, though I think that they were the foundations on which venture capital was created in the late '60s and early '70s, as traditional funds have gotten bigger and bigger in terms of capital and their management and in terms of number of people involved, people involved in those firms have become less willing and less able, either to get involved early, or to roll up their sleeves and be very active with the companies in which they invest."

Finally, is there (or will there be) a Bubble 2.0?  "I like to think that everybody -- everybody -- is a little bit smarter this time around."

Download rightmire.mp3

or read the transcript below