Editor’s note: Joan Siefert Rose is CEO of the Council for Entrepreneurial Development. Recent analysis of investment data from venture capitalist Fred Wilson and PitchBook confirm that the Research Triangle is among the best regions for returns on VC. And the CED is finding new ways to unlock more deals through its Connections to Capital program, Rose writes.

DURHAM, N.C. – As the savvy investors know, value is the name of the game when it comes to getting great return on investment.

Now, this may seem obvious. Who wants to overpay for a house or a stock? But I was happy to see Fred Wilson of USV make the case that entrepreneurial hubs outside the usual suspects on the east and west coasts, not only offer startup companies with attractive valuations, but also strong exits.

And now PitchBook confirms it, with Raleigh/Durham in the Top 5 regions for average “Multiple on Invested Capital.” The data show that, over the last 10 years, companies in the Research Triangle region of North Carolina that raised more than half a million dollars in venture capital, returned more than 8 times the initial investment upon exit.  The performance of companies in the Triangle is slightly ahead of those in Boston, and right behind Silicon Valley.

Not a bad outcome for a place that most people associate with basketball.

It’s taken 30 years to build an entrepreneurial community here, and the same is true for other top performers on the PitchBook list located somewhat off the beaten path – Washington, DC; Seattle; San Diego.  The fact that these communities are showing up regularly on lists of places to watch validates the caliber of entrepreneurial startups in these emerging ecosystems, and is a testament to the people who quietly make connections and take the risks of making those initial investments.

That’s Wilson’s point, too. He says that entrepreneurs in these places can access the talent and capital they need to be successful, although it’s a bit harder to do both than in the major hubs. Strong local investors are first in, and look to investors in the larger markets to follow on.

My organization, the Council for Entrepreneurial Development (CED), the nation’s longest-running and largest entrepreneurial support organization, has been focused on strengthening this pipeline through its Connections to Capital program. The Triangle is fortunate to have active resident early stage funds – according to CED’s Innovators Report, 8 North Carolina-based funds, including Idea Fund Partners, Intersouth Partners, Pappas Capital and SJF Ventures did deals in the state in the first quarter of 2016.

The Connections to Capital program provides a dedicated senior staff member to help companies find that next round of funding to help them grow. Since the program began last year, CED’s investor network has grown from 30 active connections to 300, made through warm introductions offered by entrepreneurs, board members, and other investors. We provide customized lists of companies that fit the portfolios of these growth-stage investors, and arrange meetings when they’re coming to the area.

Six companies have raised $55 million in the past 12 months, thanks to introductions exclusively made through the Connections to Capital program. In an average week, we’re connecting 7 companies with investors they didn’t know before. And while we never know when one of these introductions will pay off, we’re betting that the more curated connections we can make, the better the odds of a good match.

As Wilson says in his recent blog post about spending time in smaller startup communities, “It is a reminder that entrepreneurs exist everywhere and that is a wonderful thing.” It’s even more wonderful to see that hard work paying off in solid returns for investors and the communities that nurture them.

(C) CED