‘Minnebar’ Becoming Top Event for State’s Internet/Software Developers and Entrepreneurs
An annual Minnesota event, playfully named Minnebar — which grew out of a grass-roots tech industry initiative called Barcamp — is happening for the third year in a row here in the Twin Cities this coming Saturday, May 10, at the U of M’s Coffman Union.
By 8:00 am, somewhere between 300 and 400 software developers, startup founders (and hopefuls), web designers, interactive marketers, local media reporters, angels, VCs, and other investors will start converging in one place as they seldom do in any venue in these parts, at any other time throughout the year.
They come to talk shop, learn, share tips, listen to presentations on the latest tech developments and tools, share war stories, listen to startup pitches, and (of course) take notes, blog, and Twitter about all the proceedings on the laptops and smart phones they never seem to have far from their sides. Read more
The Latest on U of M Technology Innovation and Commercialization
The University of Minnesota is among the top patent producers in the world, ranking #4 on Scientist Magazine’s list of “Patent Powerhouses,” behind only three other major American universities. Yet, quantity of patents hardly paints the entire picture. What about helping to start up companies to commercialize those patents?
According to the U’s own business development people (see link to Powerpoint presentation at bottom), the 20-year success record of the U’s technology company spinoffs is only half the university average nationally — and less than one-fourth the success record of the nation’s premier schools. What’s more, in one recent year (2004), for example, the U of MN spun off only one company compared to 14 at the University of Michigan and 16 at the University of Illinois. Why I am focusing here on spinoffs? Well, because, according the U’s own business development people, creating university spinoffs is “much more profitable than licensing (revenues)” to the school. Read more
Innovation in Early-Stage Investing? You Bet! And MN Firm Is Major Player
It’s no secret the gap between friends-and-family financing and venture capital funding is big enough to drive a…well, a busload of entrepreneurs through. But I’m here to tell you, friends, there’s hope on the horizon.
The capital needs of early-stage companies used to be served well by VC funds, but the aforementioned gap has been growing ever wider in recent years as most VCs have moved toward later-stage deals. Since the beginning of time, individual angel investors have been a factor in helping young companies with their capital needs. But never before have they had to step up as an organized force to address such a big problem as we now face in our country, and right here in Minnesota.
The good news for all you entrepreneurs out there is that angels remain your best friends, because they’ve been banding together increasingly in groups to better fuel the capital needs of emerging companies.
So, why is this such an important issue? “If we’re not investing enough as a society in growth capital, we won’t grow jobs,” says Pete Birkeland (pictured here), CFO of St. Paul-based RAIN Source Capital. And his firm, the biggest little Minnesota investment firm you’ve never heard of, is doing much to innovate the process. Other members of RAIN’s management team are listed here.
Get this: RAIN Source is now the largest network of managed angel funds in the country, coming a long way in recent years in case you haven’t been watching. “We’re on the cutting edge,” said Birkeland. RAIN Source now numbers 24 funds in its network (including three licensees), across Minnesota, Iowa, North Dakota, South Dakota, Montana, and Idaho. And it already has its expansion sights clearly set on Oregon, Washington, and Florida.
The company’s RAIN Funds® are made up of angel investors interested in supporting growing companies. It helps organize these angel groups, providing part of of the capital for their funds, as well as legal templates, a process for due diligence, management support, access to deal flow, and other resources. The individual funds share expertise, deals, and experience between and among the other funds (angel groups) across RAIN Source Capital’s multi-state network. These groups range in size from seven to 61 members, with each pooling from $500,000 to $2 million in their own fund. The RAIN Source network currently has more than $25 million invested in 43 companies across its entire multi-state presence. At current count, RAIN has $17 million in available capital. And, since members can make side investments in any of RAIN’s deals, it estimates that at least another $17 million is available for investment.
Welcome to Minnov8!
Minnov8 began as an idea in late 2007 when several Minnesota geeks realized that we shared a passion and a realization that we were living in a time of the greatest shift in communication and connection — affecting both humans and machines — than we were ever going to experience again in our lifetimes.
As we talked about what was going on in Minnesota, we realized there was something missing: although there was a tremendous amount of Internet and Web-centric development, interest, passion and excitement right here in Minnesota, there wasn’t any single, online spot to read about what was happening right here in our State.
A vision emerged of an online venue where we (and, at some point, other trusted contributors) could file reports, podcast and video interviews, screencasts and other high value content that would focus on Minnesota technology innovation and provide a news and information showcase surrounding Internet-as-a-platform, application innovation on the Web, and other technology happenings we think will be worthy of coverage.
So sit back, relax and enjoy the trip as we paddle on and provide you with stories, profiles, news and information about the Internet and Web shifts occurring and how Minnesotans are innovating in this time of accelerating change.
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The "Minnov8 Gang" Podcast
