March 4, 2019

Why Choose Dallas for Investment


My Reason for Investing in Dallas

I have been investing since I was a teenager and have looked into many different strategies throughout the years. An approach that has worked well for me, as well as for many legendary investors out there (e.g. Buffett, Graham), is the value investing approach which is to find opportunities that are undervalued.

Buying in at a price that is lower than the intrinsic fundamental value and often times at prices that are lower than prices of comparable investment opportunities.

After leaving my career as a finance professional at Fortune 500 companies including Motorola, General Motors, and Citi, I pursued my passion in directing capital towards attractive investment opportunities. As well as also play an intellectually active role in helping guide the next generation of entrepreneurs towards game-changing advancements in technology or disruption of an industry.

I decided my next career path is to invest in early stage companies. Naturally I journeyed out to Silicon Valley which I spent over a year plugging in and working with various startups.

While it is a vibrant and intriguing ecosystem for technology, I also noticed fundamental limitations telling me it may not be the best place for many entrepreneurs. I also visited many parts of the U.S. to seek out where I believe is the right place that I want to be investing in long term. After visiting all 50 states, I found not all of those visits were to find the right startup ecosystem, but many of them were).

Having narrowed down my list to a few finalists, I extensively compared the pros and cons of those places. Ultimately I decided on Dallas. Here are some of reasons that convinced me.



The Final Factors

4th Largest Metro Area in U.S.

With a population of over 7 million across the Dallas-Fort Worth Metroplex, this region offers a breadth of resources that are needed to build and scale a company.

Business Friendly Environment

Texas has a pro-business environment ranging from no state income tax, business friendly regulations, and attractive quality of living. Large corporates realize that and we have seen corporate relocations into DFW more than any other region. For example, Toyota North America HQ relocated from California.

Location

Dallas is centrally located within a 3-hour flight to the west coast and north east, and 2-day ground shipping to most of the lower 48.

Customer Appeal

If you are targeting B2B customers, there is an abundance of corporate headquarters ranging from Fortune 500 companies to large, medium, small businesses.

If you are targeting consumers, this is the 4th largest U.S. metro area but importantly this presents a close representation to the larger U.S. consumer demographics rather than the more tech-savvy consumers in Silicon Valley or dense urban customers in New York City.

High Quality and Diverse Talent

Most startups do not have a ton of cash to begin with. Dallas allows companies access to high-quality talent without having to pay a high premium for employees to afford expensive housing and cost of living, or having to compete with many giant tech companies to retain talent. It allows startups to maintain a healthier runway without the need to raise as much early capital.


There are many quality startups in Dallas that are showing traction and seeking seed funding. Often times their ask is not as large as comparable companies in Silicon Valley. They may not need as much capital to achieve their objectives or have unique competitive advantages. This presents tremendous value to investors coming in.


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