Middle America’s Moment: Why Investors Are Finally Looking Beyond the Coasts

For years, the innovation economy in the United States has been anchored to its coasts, with the lion’s share of venture capital flowing into startups in Silicon Valley, New York, and Boston. But in a shift driven by both necessity and opportunity, venture capital is beginning to look inward—toward the underfunded yet innovation-rich middle of the country.

Illinois, in particular, is emerging as a compelling case study. Home to world-class universities, a growing tech workforce, and research hubs pushing the frontier of quantum computing and artificial intelligence, the state has the raw materials for a thriving startup ecosystem—minus the capital.

“Middle America—especially Illinois—is brimming with untapped innovation. Yet despite the quality of ideas and talent, these ventures often lack access to early, strategic capital,” says Ankit Shrivastava, Founder & Managing Partner of Enventure, a U.S.–India private equity firm. “At Enventure, we see this not as a challenge but as a massive opportunity. We’re investing early in overlooked markets, bringing both capital and hands-on support to scale high-potential businesses that might otherwise be missed by coastal firms. It’s time smart capital moved closer to where real innovation is happening.”

Enventure focuses on helping family-owned businesses—particularly in healthcare, AI, and industrial sectors—navigate generational transitions and scale in sustainable ways. Shrivastava and his team believe that proximity to innovation shouldn’t be the barrier to growth, especially in a state like Illinois where commercialization-ready research often stalls due to lack of funding.

Despite signs of growth in Chicago and other Midwestern cities, the region still receives only a small fraction of the venture capital that floods into coastal tech hubs. According to recent data from PitchBook, Midwest-based startups captured less than 5% of all VC funding in the U.S. last year, despite representing a significant share of the country’s intellectual capital and workforce.

With venture capital now entering what some analysts are calling a “reset” phase—shifting focus from growth at all costs to sustainable, value-driven investments—Middle America may finally have its chance to take the lead.

For investors like Shrivastava, the message is clear: smart capital doesn’t have to follow old maps.