INTRODUCTION

In the fast-paced world of business, venture capital plays a crucial role in fostering and supporting the growth of innovative start-ups. Entrepreneurs often rely on venture capitalists to provide the funding and expertise to turn their ideas into reality. At the same time, the advent of geotechnologies has opened new opportunities for companies to use location-based data and analytics in their operations. This article explores the relationship between geomarketing and venture capital, highlighting potential benefits, some tools, and fields.

FIRST DEFINITIONS

• Geotechnologies encompass a wide range of cutting-edge tools, such as geographic information systems (GIS), remote sensing, and spatial analytics, that enable companies to gain deep insights from location-related data.
• Geomarketing, a subdiscipline of marketing, focuses on the use of geographic information systems (GIS), geospatial data, and specific geotechnologies to better understand consumer behavior, market trends, and target audiences. “Geomarketing is the integration of geographical intelligence into various aspects of marketing, including sales and distribution while Geomarketing research is the use of geographic parameters in marketing research methodology, including from sampling, data collection, analysis, and presentation”.[1]
• 
  Venture capital, on the other hand, refers to financing provided by investors, known as venture capitalists, to early-stage, high-potential start-ups. These investors not only provide financial capital, but also offer their industry expertise and networks to support the growth of the new companies in which they invest. Venture capital has become an integral part of the startup ecosystem, driving innovation, job creation, and economic growth.

GEO-TECHNOLOGIES & VENTURE CAPITAL RELATIONSHIP (VENTURE CAPITAL)

Geography and geotechnologies are currently being considered in several economic sectors which it was not considered before. After the pandemic and the consequences that it has brought with it in the socioeconomic field, they have emerged as a response for emerging companies or Startups.

When we talk about Geography, many think that it is a science that studies the earth -and yes-, although it is not limited only to the immediate space that surrounds us. Geography also seeks answers about the dynamics between space and society, it studies all those phenomena that determine certain behaviors in the human being. In addition to helping to understand the relationships and needs of an individual or a group of individuals at different scales. For example inclinations towards a specific type of climate, the creation of new settlements, emigration and immigration, the identification of faster transport routes to alleviate costs, or perhaps the location of a certain group of people with important characteristics for a business.

The question then arises of how geography and geotechnologies are present in a purely financial area such as Venture capital or venture capital investment. In the first instance, one of the branches of geography "Geomarketing" emerges, which through certain techniques can improve decision-making processes and capital levels in small-medium companies.

With the help of Geomarketing techniques, unknowns can be resolved such as where to create sales centers, identification of areas of influence, the impact of the company at a local, regional, and perhaps global level, location of the competition, and identification/location of potential customers or investors. All this information is anchored to a spatial database, an inventory like the "cadastre" to put it in some way, and integrated into a Geographic Information System that in turn is connected to the requirements or goals established by a Venture Capital company, it could be much more than beneficial.

Through geomarketing it is possible to determine the needs of certain areas, and there is one more advantage to be added, and that is that each person in the world is a data issuer since we are constantly connected to mobile devices that capture and process information. This data can be used to define sales or investment strategies and can be automated using certain platforms, programming languages such as Python, R, and C+ or modules such as Arcpy.

Once a startup receives venture capital funding, geomarketing – and all the spatial information captured – can further improve its growth prospects, leveraging its techniques to identify and target its ideal customers more effectively. By analyzing geospatial data, startups can determine the most promising locations to target for their products or services, tailor their marketing campaigns to specific geographic areas, and optimize their distribution channels. This targeted approach can lead to better customer acquisition, higher conversion rates, and therefore higher revenue.

With its ability to uncover hidden market potential and consumer preferences, geomarketing has attracted venture capitalists who understand the importance of location-based insights. By integrating geotechnologies into their investment strategies, venture capitalists gain access to a comprehensive understanding of market dynamics, competition, and client segments.

Armed with this irrefutable information, venture capitalists can make informed investment decisions, leading to increased funding opportunities for startups that have integrated geomarketing into their business models.

 TOOLS AND PLATFORMS

There is a very interesting website, based on StartupExplore geolocation data, it shows a variety of startups, suppliers, Investors, co-working spaces, and more. It is shown as an opportunity for investors who want to specifically locate themselves in a part of the world, and verify what their investment options are, or perhaps the location of the competition.

Very similar to the previous one is StartupBlink, which shows more information related to startups worldwide, the information can be classified into startups or ecosystems. And the following categories are displayed: Startups, Unicorns, Co-working Spaces, Accelerators, Leaders, and Organizations.

For entrepreneurs, they can be added to this data ecosystem which allows them to become visible on the world scene. This platform provides detailed information on the best cities for startups called the "Global Startup Ecosystem Report", and shows the featured Ecosystems by city and country, such as Kyoto - Japan, Cali - Colombia, Seoul - South Korea, Australia or Singapore. It has a Pro membership, which allows access to more specific data on those startups and other data on the growth of all of these worldwide.

The goal itself of this website is: Understand where the innovation poles are, find out how each country or city ranks compared to thousands of other startup ecosystems around the world, locate new companies by industry, sub-industry, and filter with more than 500 tags and 500 filters in more than 500 categories.

Another interesting tool could be the use of solutions or applications from large companies in the Geotechnology sector such as ESRI. They launched a tool called StoryMaps on the market, a web platform where stories can be told through maps. And how would a Venture Capital company use it? Well, telling its story, establishing the location of its success stories, indicating the location of its offices, manifesting its presence locally or globally and where all these companies are located/ startups that have received some financial benefit from you.

CONCLUSION

In this changing world, immersed in a 4th technological revolution, it is essential to be linked to information technologies and therefore to geotechnologies. Many Startups base their structure on geospatial data, others provide services that are relevant for decision-making at the local and national levels, and others improve the quality of life of the inhabitants.

Added to this, we could say that the relationship between geomarketing and venture capital is let's say “symbiotic”. Geomarketing provides venture capitalists with valuable information to evaluate potential investments, mitigate risk, and maximize returns. Simultaneously, venture capital enables startups to take advantage of geomarketing techniques, optimize their strategies, target their ideal customers, improve their operational efficiencies, and identify momentous partnerships.

As both fields continue to evolve, the relationship between geomarketing and venture capital is likely to become even more intertwined. Startups that harness the power of geomarketing tools and techniques will be better positioned to attract venture capital and accelerate their growth. Venture capitalists, armed with geospatial insights, will have the ability to identify high-potential startups and make informed investment decisions.

It should be noted that it would be a success for Venture capital companies to invest in emerging companies related to the implementation of geospatial data capture and processing sensors, IoT – Internet of Things-, BIM – Building Information Modeling-, AI –Artificial Intelligence-, or Digital Twins. With all this information, sustainable cities are created over time, and the development of new technologies that help preserve natural resources or prevent risks is encouraged.

 REFERENCES

• Knowing Customer Behavior with Location Data
• Geomarketing startup xAd gets $50 M to ride high on location wave
• Geomarketing: Methods and Strategies in Spatial Marketing
• Digital Marketing For Venture Capital – The Complete Guide
• Why Digital Marketing Is An Important Tool In VC
• [1] Suhaibaha et al. 2016. 3D Geomarketing segmentation: A higher spatial dimension planning perspective. Proceedings of the International Conference on Geomatic and Geospatial Technology (GGT)