In the past decade, over 1,500 startups with founders from Midwest universities* have raised over $1M of venture capital funding. A startling 80% of those companies are outside the Midwest region, nor are they backed by venture capitalists from the region.
*Midwest universities include universities from Missouri, Illinois, Kansas, Kentucky, Arkansas, Nebraska, Iowa, Oklahoma, and Tennessee. Data sourced from Crunchbase.
Macro-economic forces and shifts in risk tolerance have led investors to move downstream to later stages. Additionally, founders lack access to quality mentors and advisors that can dramatically increase the success rate of their startups. With reduced access to risky capital and supporting infrastructure, founders leave the region for greener pastures on the coasts.
Without the allure of high-paying jobs the region will continue to struggle attracting and retaining talent. This directly harms innovation and creates economic stagnation.
This gives founders enough capital and the right guidance to get from Minimal Viable Product (MVP) to Product Market Fit (PMF) Startups that arrive at Seed and Series A while still headquartered here are more likely to stay in this region. This translates to job creation and boosts our region’s innovation economy.