Is there untapped startup potential beyond Silicon Valley? Run Ventures' $290M fund believes so

Silicon Valley and New York may still dominate the headlines, but the next wave of AI-driven innovation is also happening elsewhere. From Salt Lake City to Denver to Atlanta, emerging ecosystems are producing companies that are just as ambitious—and often more capital efficient—than their coastal counterparts.

Run Ventures, a new $290 million Series A fund led by longtime investors Brandon Tidwell and Ben Dahl, is betting that the next tech boom will be built outside the traditional hubs. Both Tidwell and Dahl bring decades of venture experience and strong track records, with past wins including Cloudflare, Integral Ad Sciences, Bark, and Filevine. Together, they launched Run to double down on what they see as one of the most overlooked opportunities in venture today: AI-enabled companies growing in underserved geographies.

Why Run Ventures Was Founded

Tidwell and Dahl spun out of Signal Peak Ventures to form Run Ventures with a clear mission: to be the lead Series A partner for founders in growth hubs beyond the Bay Area. Their thesis is simple. While seed capital has become abundant everywhere, there is still a critical gap when startups need $5–10 million to scale. Coastal mega-funds often overlook these opportunities, but Run sees them as the sweet spot for outsized returns.

"As founders choose to live and build in more affordable, amenity-rich cities, capital has not kept pace," Tidwell explained. "Our job is to bridge that Series A gap, so founders do not need to uproot themselves to attract investors."

The firm's very name captures its philosophy. After years of working hands-on with successful startups like Filevine, Degreed, and Authenticx, Run Ventures is poised to run, moving faster, backing ambitious founders, and helping them accelerate toward breakout scale.

The AI Factor

AI is reshaping the startup landscape, and it is a major driver behind Run's conviction. According to Y Combinator, a quarter of new founders already say that more than 95% of their code is AI-generated. Anthropic CEO Dario Amodei recently predicted that within a year, nearly all code could be written by AI.

AI is enabling founders to build more efficiently, often with smaller teams and outside of traditional hubs like the Bay Area. They can scale more rapidly, with smaller teams, from anywhere in the country. In fact, AI-enabled companies are reaching $100 million in ARR faster than ever before—a dynamic that makes Series A a particularly attractive entry point for investors like Run Ventures.

Proof in the Portfolio

The firm's reach extends across the globe; Run is a significant investor in Hubpay, a high-growth fintech with teams in London and Dubai. Run is also a major backer of Alianza, which recently acquired Microsoft's UK-based Metaswitch business, cementing its position as a telecom software leader with a substantial footprint in the UK and across much of Europe.

One of Run's standout portfolio companies is Filevine, based in Salt Lake City. Filevine provides an AI-powered legal operating system used by law firms across the world. The company is growing fast with hundreds of millions in ARR and recently attracted major growth investors such as StepStone Group and Meritech.

By embedding AI into everyday legal workflows, Filevine illustrates the thesis Run Ventures was built on: industry-specific AI innovation can thrive outside the coasts and still compete on a global scale.

Other Run-backed companies reflect the same pattern. Authenticx, based in Indianapolis, is using AI to convert unstructured voice data into meaningful, actionable insights for some of the largest healthcare enterprises in the world. While Bark, headquartered in Atlanta, uses sophisticated monitoring software to protect kids from online threats like cyberbullying and pornography. These companies prove that elite innovation can emerge from anywhere talent chooses to live.

Macro Trends Driving the Shift

Run Ventures is also responding to bigger changes in venture capital. In 2024, just nine firms accounted for nearly half of all U.S. venture capital raised. Those mega-funds increasingly focus on billion-dollar checks at later stages, leaving Series A founders underserved.

At the same time, smaller funds like Run have consistently outperformed their larger peers on returns. Data from PitchBook shows that smaller funds generate higher internal rates of return on average than mega-funds. By keeping Run's new fund at $290 million, the partners can maintain discipline, lead meaningful rounds, and stay hands-on with portfolio founders.

"Capital concentration is real, but it has also created a gap," Dahl said. "We believe the combination of a right-sized fund, founder-first approach, and focus on underserved geographies will give us an edge."

A Founder-First, Geography-Fluid Approach

Run's strategy is not limited by sector, but it is grounded in founder quality. The firm backs entrepreneurs who, in Dahl's words, "are willing to go the distance." With a network that spans the Mountain West, Texas, the Midwest, and beyond, Run can identify promising founders earlier and support them with board-level engagement, recruiting help, and follow-on fundraising.

While much of the industry has retrenched to the Bay Area for AI deals, Run sees that as an opportunity. By being willing to travel and engage in ecosystems like Salt Lake, Denver, Atlanta, and Indianapolis, the firm can lead deals that others miss.

Why Tidwell and Dahl Are the Right Pair

Both Tidwell and Dahl bring complementary strengths. Tidwell, who began his career in Silicon Valley, understands the dynamics of coastal venture but has built a career on spotting overlooked opportunities in the interior. Dahl brings a mix of operator and investor experience, with a reputation among founders for steady support during difficult moments. Together, they are known for being highly engaged board members who work alongside founders through the highs and the inevitable lows of building a company.

The Next Tech Boom Is Everywhere

The combination of AI-driven acceleration, talent migration, and overlooked Series A opportunities makes now the right time for Run Ventures to launch. The $290 million fund represents a commitment to back the next generation of category-defining companies, no matter where they are headquartered.

Today, more founders are successfully raising capital from cities beyond San Francisco and New York. Opportunities are emerging in markets that were once overlooked.

Run Ventures is betting that the next AI-driven boom will not be confined to Silicon Valley. It will be built everywhere—and Tidwell and Dahl are ready to run with the founders leading that charge.