Minnov8

Showcasing Minnesota Technology Innovation

Minnov8 Gang Podcast – Episode 37

By

martinyman1Our guest this week is Marti Nyman, a senior business development executive with more than 20 years of success in areas within the Energy, Telecommunications, and Consumer Retail sectors, and, most recently, was responsible for the formation and launch of Best Buy’s Venture Capital practice.

Nyman, along with serial entrepreneur John Montague, are off on a new adventure — certain to make a big impact on the startup climate here in Minnesota — called “40 Ventures” and he tells us all about their innovative model of a fund for startups.

Hosts: Steve Borsch, Tim Elliott, Graeme Thickins and Phil Wilson.

m8-spacer

The Podcast

Podcast: Download (Duration: 41:32 — 24.0MB)

Subscribe: Apple Podcasts | RSS | More

m8-spacer

Discussed During the Show Notes:


2008 Investor Fraud Traps

By

Whether you’re an angel investor listening to startup pitches or an innovator considering funding sources, now is a time to be extra careful with anything related to money, credit, lending or capital of any kind — especially if you’re a participant in a social or affinity network or if you’re transparent with your blog and other online participation (which give scammers lots of ammo to use to pitch you).

The Minnesota Department of Commerce just released this 2008 Investor Fraud Traps listing (in alphabetical order) and offer it as a warning:

Deficient Disclosure: The recent investigations by state securities regulators related to auction-rate securities (ARS) have reinforced that investors should remain cautious when pitched complex investment products accompanied by deficient disclosures or when advised to concentrate their investments too heavily in one investment product. It is best to avoid investment pitches that would lead you to put all of your eggs in one basket, especially if it’s a basket you don’t fully understand.

Energy Scams: The substantial increase in energy costs has made scams related to energy more prevalent. State and provincial securities regulators are seeing not only shady oil and gas investments, but also scams that promise the development of new technologies to increase the efficiency of energy consumption or to extract energy from sources previously thought too expensive to develop.

Online Affinity Fraud: In a new twist on affinity and online investment fraud, Tyler said NASAA members are concerned that unscrupulous individuals are trying to use social networking websites to lure people to meetings that may promote fraudulent or unsuitable investment products. “Social networking websites create an environment ripe for affinity fraud,” Tyler said. “Fraudsters can take advantage of the fact people freely share information with both their real and ‘virtual’ friends by posting it to their profile,” Tyler said. “Communication tools provided by some social networking websites make it easy to advertise and promote investment scams to a wide audience for free.” Investors need to do their own research before making an investment and should not simply rely on ‘expert’ advice given at a seminar or meeting.

…  [Read More…]

Minnov8 Gang Podcast – Episode 7

By

We were absolutely delighted this week to have three very special guests who joined the Gang for a discussion about ‘net and web innovation in Minnesota:

– Katharine Grayson: Staff Writer for the Twin Cities Business Journal. Katharine covers the internet and web technology beat for the paper, but she’s also expanded into other technologies (e.g., MSP solar array funding, biotech) giving her unique perspectives.

– Julio Ojeda-Zapata: Reporter for the St. Paul Pioneer Press, blogger, and author (his new book, “Twitter Means Business: How Microblogging Can Help or Hurt Your Company” will be on bookshelves soon). Julio can be reached at jojeda@pioneerpress.com. Get more of his perspective on personal tech at twincities.com/techtestdrive and yourtechweblog.com. You can also follow him at twitter.com/jojeda.

– Jon Gordon: Future Tense, a show which you’ve undoubtedly heard broadcast during Minnesota Public Radio’s Morning Edition program. The show is both produced and hosted by Jon Gordon, a Minnesota Public Radio reporter based in Silicon Valley. Follow Jon at twitter.com/jongordon.

Hosts: Steve Borsch, Tim Elliott, Graeme Thickins, Phil Wilson

m8-spacer

The Podcast

Podcast: Download (Duration: 1:04:41 — 37.6MB)

Subscribe: Apple Podcasts | RSS | More

m8-spacer

Show Notes:

+ Julio’s post on Minnesota Public Radio’s new, free iPhone app (get it here) done by Codemorphic

+ Discussion on broadband where Minnesota’s Ultra High Speed Broadband task force came up (latest minutes are here in this PDF) and Jon mentioned a show he’d done (here) and his interview with a cybersecurity firm called Packet Clearing House.

+ As you listen, you may notice at times the audio is a bit “hot” and I apologize for that — there’s a bit more distortion than normal and I couldn’t minimize it enough in post-production. We tried a new, high quality ‘bridge’ recording platform (HiDefConferencing) — instead of using a single Gang-member hosted Skype conference call — and while it allowed our guests to easily call in with a combination of Skype, landlines or mobile phones, it was more challenging to control levels. I’ll have it figured out by next time.

Podcast: Download (Duration: 1:04:41 — 37.6MB)

Subscribe: Apple Podcasts | RSS | More

‘Minnebar’ Becoming Top Event for State’s Internet/Software Developers and Entrepreneurs

By

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.
Minnebar logo 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.

Coffman Union 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…]

Innovation in Early-Stage Investing? You Bet! And MN Firm Is Major Player

By

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.

 

rainsource-logo1.jpgThe 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.

 

petebirkeland1.jpgSo, 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.

…  [Read More…]