Most Companies Funded in KC, Stay in KC [Survey Results]
Almost 75 percent of the companies that received equity or grant funding in 2013 or 2014 still operate in the Kansas City area. Of the 19 companies that got funding from capital sources outside the KC region, only 5 have relocated.
KCSourceLink looked at 135 Kansas City-area companies that received equity funding or grants in 2013 and 2014, to determine where those companies are currently located.
As of May 2016, 100 companies (74 percent) who received funding in 2013 or 2014 were still operating in the Kansas City region (defined as a 100 mile radius from downtown.) Only five (4 percent) left Kansas City, and four (3 percebt) moved headquarters as a result of acquisition. The study found that 19 percent of the companies had ceased operation or were inactive.
Because funders are frequently undisclosed, it’s impossible to say with any certainty the total number of companies that received funding from sources outside Kansas City. Data available reveals that at least 19 companies received funding from outside the Kansas City region. Of that 19, 14 are still operating in the Kansas City region.
According to public databases and private sources, five companies in this study left Kansas City after they received funding from outside the Kansas City region. This is a very small sample size, so it is impossible to draw conclusions about why these companies left. Three of the companies moved to the region from which their funding came. Two did not.
Here is the disposition of the five companies that moved:
· One company received funding from St. Louis Arch Angels and moved to St. Louis.
· Another received Series A funding from St. Louis and moved to St. Louis.
· One company received a grant from an organization based in Florida, and moved to San Francisco.
· One received significant Series D funding (with the lead investor from Boston) and moved to Massachusetts.
· Another received a significant investment from San Francisco funders, and moved to Colorado.