There’s no shortage of noise coming out of San Francisco and New York with AI breakthroughs, billion-dollar valuations and the race to back the next big consumer app or fintech darling. With a crowded landscape sometimes influenced by hype, venture capital has developed a kind of tunnel vision. The fixation on what’s shiny and fast-scaling has blinded many investors to the country’s most foundational industries, which are the ones that really keep America running.
The next wave of truly transformative companies won’t just come from Silicon Valley’s demo days or AI leaderboards. They’ll emerge from factory floors, farms and freight hubs, built by founders modernizing industries like manufacturing, agriculture and logistics, which make up the backbone of the Midwest economy and much of …
There’s no shortage of noise coming out of San Francisco and New York with AI breakthroughs, billion-dollar valuations and the race to back the next big consumer app or fintech darling. With a crowded landscape sometimes influenced by hype, venture capital has developed a kind of tunnel vision. The fixation on what’s shiny and fast-scaling has blinded many investors to the country’s most foundational industries, which are the ones that really keep America running.
The next wave of truly transformative companies won’t just come from Silicon Valley’s demo days or AI leaderboards. They’ll emerge from factory floors, farms and freight hubs, built by founders modernizing industries like manufacturing, agriculture and logistics, which make up the backbone of the Midwest economy and much of America at large.
The Hype vs. the Real Economy
VC money tends to cluster around “the current thing.” Today, that mostly means AI or any other software that promises exponential user growth with minimal friction. Meanwhile, America’s largest and most essential sectors – manufacturing, agriculture and logistics – remain underinvested. These industries represent trillions of dollars in economic activity and employ tens of millions of workers, particularly in the Midwest. They shape our daily lives far more than the latest chatbot or payment app ever will; yet, they rarely inspire the same enthusiasm from investors.
It’s a missed opportunity; these sectors are ripe for innovation that delivers tangible impact, not just convenience or entertainment, but resilience, productivity and security for the real economy.
Manufacturing: America’s Engine of Growth
Manufacturing has long been America’s growth engine, but the systems powering it are long overdue for modernization. From retooling supply chains to deploying robotics, automation and AI-driven efficiencies, there’s a massive opportunity for both hardware and software innovation.
Companies that help manufacturers adapt, cut costs and stay globally competitive are ensuring that America can still make things efficiently, sustainably and at scale, which is arguably one of the biggest challenges of our time. As geopolitical tensions rise and impact supply chains, investing in technologies that strengthen domestic production is just smart business.
AgTech: Feeding the Future
Agriculture is one of the country’s oldest and largest industries, deeply woven into the fabric of the Midwest and South, but it’s also one often left out of innovation. The next wave of agtech is poised to change that, moving beyond seed science to embrace climate-resilient crops, precision robotics and AI-driven farm management.
These advances extend far beyond helping farmers, addressing global challenges such as food security, sustainability and climate adaptation. Agtech startups may not grab headlines like AI chatbots, but they have the power to redefine how we feed a growing population in a changing world.
Why Silicon Valley Gets This Wrong
Part of the problem is structural. The traditional venture model rewards fast-scaling, low-capital businesses, such as software companies, that can grow quickly with minimal overhead. But industries like manufacturing and agriculture don’t fit that mold – they demand deep domain expertise, patience and a willingness to get your hands dirty.
We’ve found that a pragmatic, grounded approach focused on long-term value creation is better suited to these sectors, where success is not about chasing the next hype cycle, but about backing founders who tackle hard problems – which they’re uniquely positioned to solve – that have a lasting impact on all Americans.
It’s also imperative that top talent in all industries, no matter where they’re located, get the attention they deserve. Talent is ubiquitous, but access to capital is not, and that needs to change. When we can leverage and support unique talent from coast to coast is when we can create the biggest economic impact for our country.
Redefining Innovation
Innovation isn’t just about consumer-facing tech becoming household names or achieving unicorn valuations. True innovation means tackling the hardest, least glamorous problems, like how we build, move and feed. If we want to strengthen our economy and secure our future, we need to broaden our definition of what counts as “innovative.”
It’s time for more capital to flow into the companies serving core American industries – because the future of innovation won’t just be written in Silicon Valley; it will be built on factory floors, in fields and across the supply chains that keep America running.
The opinions expressed in Fortune.com commentary pieces are solely the views of their authors and do not necessarily reflect the opinions and beliefs of Fortune.