New Mexico is attractive for investments because of its proximity and access to an expansive federal R&D apparatus, emerging entrepreneurial ecosystem, and low cost. It is an “out-of-the-way” place that is attractive, in part, precisely because it is out of the way. We see several macro trends playing to our favor.

The pandemic has fundamentally changed the way businesses operate, laying the groundwork for a new era of fully remote startups without central offices. Once considered an oddity seen only in the tech industry, distributed startups are nimble, less capital intensive, and hold many advantages in an evolving landscape where employees and capital are becoming untethered from specific geographic locations.

In addition, the venture capital industry is experiencing seismic restructuring of its own. Historically concentrated in three major coastal hubs, VCs are shifting their focus inland and identifying opportunities by seeking talent with deep, local expertise. As a result, Silicon Valley’s proportion of overall US VC investments fell from 62.3% to 50% in 2019, the lowest point since 2013. We firmly believe that this is recognition from the VC industry that while creativity can happen anywhere, opportunity does not.

Tying it all together, discovering and building robust companies in partnership with New Mexico’s world-class research institutions is what we do best. It is a craft that we have fine tuned over decades of experience from taking multiple NM companies to exit. Our intuition tells us that the state is beginning to hit its stride and the metrics below illustrate why New Mexico is an attractive state for investors.