Raising Money for Midwestern Startups is Difficult

Say you’re a shiny startup launching in an emerging entrepreneurial hub – perhaps in Detroit, Chicago or Cleveland. Congrats! You have access to great research institutions, an educated workforce and an astoundingly low cost of living and wages relative to the coasts. But when you look for capital, you’ll face the harsh reality of launching a business in the Midwest.

There’s no way to sugarcoat this: VCs on the coasts aren’t usually interested in you. There’s an unfortunate history of many Midwest-based startups raising a seed round of funding, then running out of money before generating sustainable revenue or lining up a Series A round.

If you wanna play, you play in the Bay…

It is all about concentration of mass…People want to be here the action is…Besides the most talented want to go to the best place, not the cheapest place

Groupon is in Chicago. If Groupon can execute and become successful, it could be good for the Midwest. But Chicago is probably too dangerous for tech employees.

Seattle is very safe and it’s rising.