I connected with a founder living in the Southeast in a city that’s not a major metropolitan area. He raised capital from investors a few years ago but had an experience that wasn’t pleasant. He received a term sheet from a venture capital firm in a big coastal city. The investors expected his team to move to a large tech hub, but he politely declined. His team was remote (this was pre-COVID), and he didn’t think moving was necessary to success. The investors disagreed and pulled the term sheet.

Great teams can be found in all cities, not just the big tech hubs. The reasons people have for living where they do vary. Work is important, but it’s not the only factor. The decision often revolves around what suits their personal lives (e.g., being near friends and family). The last year and a half has been very difficult, but there’s a silver lining: less pressure for people to relocate for work. More great people are now able to live where they want and work remotely for a great company.

Is this a temporary or permanent change? Time will tell. My gut tells me people’s mindsets have shifted. I predict that employers and investors will continue to embrace team members living wherever suits their personal circumstances. This won’t apply to all roles, but I think it will be an option for a much large number of people that it was a few years ago.