Rise of the Rest

Rise of the Rest
Name	Rise of the Rest
Founded	2014
Founder	Steve Ballmer
Type	Venture fund and tour
Headquarters	United States
Industry	Venture capital, entrepreneurship

Rise of the Rest

Rise of the Rest is an investment initiative and tour-driven venture effort founded to spotlight and fund startups outside major technology hubs. The program, associated with a national tour of pitch events and seed investments, connects entrepreneurs with investors, corporate partners, and civic leaders across the United States. Its activities intersect with national discussions involving urban policy, regional development, and philanthropic capital.

Background and Origins

Rise of the Rest was launched in 2014 by former Microsoft CEO Steve Ballmer following his interest in regional revitalization and technology investment. Early publicity tied the initiative to Ballmer's broader involvement with the Ballmer Group, philanthropic work including the U.S. Soccer Federation support, and civic investments reminiscent of initiatives by figures associated with Andreessen Horowitz, Sequoia Capital, Peter Thiel, and Paul Graham. The concept drew on precedents in regional investment promotion such as efforts by Kleiner Perkins, Benchmark Capital, and the public–private partnerships seen in projects involving Bloomberg Philanthropies and the Eds and Meds movement. Initial tours featured partnerships with local mayors like Mayor of Detroit leaders, state economic development agencies, and university innovation centers similar to Massachusetts Institute of Technology and Stanford University entrepreneurship programs.

Investment Strategy and Activities

The Rise of the Rest fund combines a seed-stage investment strategy with a publicity-driven touring model to source deals across non-coastal markets. Its approach resembles syndication practices used by firms like Union Square Ventures, First Round Capital, and SOSV, while also echoing later-stage coordinating tactics from Accel Partners and Greylock Partners. The fund has targeted sectors such as healthtech aligned with networks like Johns Hopkins University and Mayo Clinic, fintech linked to hubs like Chicago, and proptech resonant with developers involved with Related Companies. Investment decisions have been influenced by due diligence processes comparable to those at Goldman Sachs, Bain Capital, and BlackRock, and utilize local limited partners including state economic development authorities and civic foundations modeled after Knight Foundation and Ford Foundation grants.

Impact on Regional Startup Ecosystems

Rise of the Rest sought to catalyze entrepreneurial activity in cities such as Detroit, Cleveland, Columbus, Ohio, Pittsburgh, St. Louis, Raleigh, North Carolina, and Nashville, Tennessee. The initiative interfaced with regional accelerators like Techstars, Y Combinator, and university incubators at University of Michigan, Ohio State University, and Duke University, aiming to amplify funding flows comparable to those attracted by metropolitan success stories involving Amazon HQ2 bids and corporate relocations such as Tesla and Intel. Its presence influenced local angel groups, including chapters of AngelList-affiliated syndicates and state-based networks modeled after New York Angels and Tech Coast Angels, while stimulating partnerships with chambers of commerce and workforce initiatives tied to organizations like Brookings Institution and Economic Innovation Group.

Notable Tours, Pitch Competitions, and Events

Rise of the Rest organized multi-city tours featuring pitch competitions, investor panels, and civic roundtables in collaboration with mayors, university presidents, and business leaders. Events showcased startups from metro areas such as Baltimore, Milwaukee, Kansas City, Cincinnati, and Charlotte, North Carolina and included judges and mentors drawn from firms including Bessemer Venture Partners, Kapor Capital, and corporate venture arms like Intel Capital and Salesforce Ventures. The tours attracted media attention from outlets akin to The New York Times, The Wall Street Journal, and Bloomberg News, and were convened alongside conferences resembling SXSW, Web Summit, and Collision satellite events.

Criticism and Controversies

Critics compared Rise of the Rest to high-profile initiatives by technology philanthropists such as Mark Zuckerberg and Bill Gates, arguing that glossy tours risked substituting for sustained investment strategies used by established firms like Benchmark and Kleiner Perkins. Commentators referenced debates similar to those around Amazon HQ2 incentives and tax abatement controversies seen in cities that courted Tiger Global Management and SoftBank Vision Fund investments. Some local stakeholders cited concerns about short-term publicity over long-term capital commitments, invoking comparisons to failed revitalization narratives associated with industrial decline in places covered by reporting from ProPublica and academic studies from Harvard University and MIT urban labs.

Legacy and Influence on Venture Capital Practices

Rise of the Rest influenced conversations about geographic diversification in venture capital, echoing shifts promoted by investors such as Fred Wilson, Union Square Ventures, and regionally focused funds like Drive Capital and Foundry Group. The model encouraged other limited partners and institutions—ranging from state pension funds to university endowments like Yale University and Princeton University—to consider allocations outside traditional hubs such as Silicon Valley, New York City, and Boston. It also informed corporate engagement strategies by companies including Google, Microsoft, and Amazon Web Services in regional accelerator sponsorships and developer outreach, and contributed to evolving metrics for impact investing seen in frameworks from Global Impact Investing Network and philanthropic intermediaries.

Category:Venture capital firms in the United States