WELCOME BACK.
INC.
MAGAZINE RECENTLY NAMED
MINNEAPOLIS ONE OF THE BEST
CITIES TO START A BUSINESS.
WHILE MOST STARTUPS FAIL IN THE
FIRST FIVE YEARS, MINNESOTA HAS
A SUCCESS RATE OF 54% WHICH IS
THE THIRD BASE THIRD BEST IN
THE NATION.
WE'LL TALK ABOUT THE KEYS TO
SUCCESS.
THANK YOU FOR BEING HERE.
HAPPY TO BE HERE.
WHY DO YOU THINK SO MANY
ENTREPRENEURS ARE STARTING A
BUSINESS IN MINNEAPOLIS?
THERE IS A CONCENTRATION OF
TALENT AND DIVERSIFICATION IN
THE INDUSTRIES.
WE HAVE A LOT OF BIG COMPANIES
WERE THE FORTUNE 500 CAPITAL IN
A LOT OF DIFFERENT INDUSTRIES,
A LOT OF DIVERSE INDUSTRIES.
RETAIL WITH TARGET AND BEST
BUY, AGRICULTURE WITH LAND O
LAKES AND GENERAL MILLS.
YOU HAVE MET TECH WITH UNITED
HEALTH AND A LOT OF DIFFERENT
TALENT HERE, THEY WORK FOR
THOSE COMPANIES FOR A NUMBER OF
YEARS AND THEN GO OUT AND START
THOSE OWN ENTREPRENEURIAL
ENDEAVORS.
IN THE NEWS BUSINESS WE
OFTEN COVER CLOSURES AND MAYBE
DON'T HIGHLIGHT MANY OF THE
SUCCESS STORIES BUT WE WERE
TALKING EARLIER ABOUT IS THERE
A SECTOR THAT THIS IS WORKING?
WHETHER IT IS RETAIL OR, YOU
KNOW THE FOOD INDUSTRY OR, IF
YOU REALLY JUST KIND OF ALL
OVER THE MAP?
EVERYTHING SEEMS TO BE TODAY
FROM A STARTUP 10 POINT
TECHNOLOGY-BASED, IF YOU'RE
OPENING UP A HOTDOG STAND YOU
WOULD HAVE A GOOD CRM TO MAKE
SURE THAT YOU ARE YOU KNOW YOUR
CUSTOMERS ARE.
IT REALLY IS ACROSS THE BOARD
BUT YOU WANT GOOD TALENT, YOU
WANT TO INVEST IN THE
INDIVIDUALS WERE PUSHING THE
IDEA FORWARD.
WHY DO SO MANY BUSINESSES
STRUGGLE IN THE FIRST FIVE
YEARS?
54%, THAT IS HALF.
IS A HIGH WIN RATE, A HIGH
BATTING AVERAGE, IF YOU WILL.
THAT IS LARGELY DUE, I THINK
CULTURALLY IN THIS AREA, A LOT
OF RISK AVERSION.
AND A LOT OF EARLY INVESTORS
ARE FRIENDS AND FAMILY.
HERE, IN THE MIDWEST, WE DON'T
WANT TO DISAPPOINT OUR FRIENDS
AND FAMILY SO THEY MIGHT PICK
BUSINESSES THAT HAVE A HIGHER
SURVIVAL RATE.
AT THE SAME TIME, WE ARE
ATTRACTING MORE INTEREST IN
DOLLARS AND CAPITAL FROM THE
INVESTMENT HUBS LIKE LITTLE
WEST COAST, SAN FRANCISCO, NEW
YORK OR BOSTON.
THEY ARE SEEING A BIG WORK
ETHIC ADVANTAGE, AND AN
EVALUATION ADVANTAGE WHERE YOU
CAN GET MORE AN MONEY CAN LAST
LONGER HERE.
I KNOW YOU HAVE SOME TIPS,
WHAT DO YOU TELL PEOPLE TO GET
THEIR IDEAS OFF THE GROUND?
ON THE INVESTOR SIDE, SURE
YOU ARE CAREFUL.
SURE YOU HAVE THE RIGHT
PARTNERS, DO YOUR HOMEWORK.
IF YOU'RE GOING TO BE AN AUNT
YOURSELF, SAME THING.
MAKE SURE YOU FIND SOME
INVESTORS AND THE RIGHT
PARTNERS THAT MAY BE ABLE TO
DELIVER MORE THAN CAPITAL.
WILL THEY BE MENTORS?
CAN THEY MAKE INTRODUCTIONS, TO
HAVE AN UNDERSTANDING ABOUT THE
IN INDUSTRY YOU ARE GOING INTO
AND HAD SUCCESS SO THEY CAN
OPEN UP OTHER DOORS FOR YOU?
HOW BUT INVESTORS ON THAT
SAME NOTE?
TIPS FOR THEM AS WELL BECAUSE
SOMETIMES IT CAN BE A BIT
RISKY?
BE PREPARED TO RISK.
IF YOU ARE INVESTING IN A
STARTUP, HALF OF THEM FAIL, IN
REALITY 80-90% OF THEM FAIL.
DON'T INVEST MONEY YOU CAN'T
AFFORD TO LOSE.
LOOK FOR PROGRAMS THAT WILL
HELP.
LAST YEAR, THE MINNESOTA ANGEL
TAX CREDIT, IT IS GONE FOR 2020
BUT WILL BE BACK IN 2021.
YOU CAN GET 25% OF YOUR
INVESTMENT BACK FROM THE STATE
OF MINNESOTA IF YOU ARE
INVESTING IN A ANGEL TAX CREDIT
QUALIFYING COMPANY.
THERE'S A LOT OF DIFFERENT
PROGRAMS AND PLATFORMS THAT ARE
SUPPORTING OUR DOORS, BOTH ON
THE STARTUP SIDE, AS WELL AS
THE INVESTOR SIDE.
MINNESOTA DEPARTMENT OF
EDUCATION OR EMPLOYMENT, AND
ECONOMIC DEVELOPMENT HAS SOME
GREAT PROGRAMS, GREATER MSP HAS
SOME GREAT PROGRAMS THAT THEY
BRING ALL THE RESOURCES
TOGETHER FOR THE STARTUP
COMMUNITY.
BOTTOM LINE, MINNEAPOLIS AND
ST. PAUL TO A GOOD PLACE TO BE
FOR BUSINESS.
STATEWIDE FOR A MATTER OF
FACT THERE'S A LOT OF REGIONAL
AND GREATER MINNESOTA
BUSINESSES AND PROGRAMS AS
WELL.
THANK YOU SO MUCH FOR COMING