My 15 Minutes of Fame

"In the future everyone will be famous for fifteen minutes."
                                                                                        -- Andy Warhol

Thanks to Brad & Adam from ePrairie and Tim at StoryQuest for my 15 Minutes of Fame on their recent podcast. We talk about a variety of topics related to the general VC world and the Midwest entrepreneurial community. You can check out the ePrairie Podcast here.

Comments

[Anonymous]

Yes, we can discuss what is happening in the midwest until the cows come home, but action needs to start happening.

It sounds like the VCs in the midwest aren't really "VCs", but instead they "buy" existing companies. A VC is responsible for help create a company financially and managerially, not buy existing companies. There's no risk in buying something that's done, like ticketsnow.com. The only risk is making sure the company operates and executes, which I put into company acquisition.

To be a TRUE VC, the deal must be made EARLY on.. before the web site is even completed or the tools are done or the equipment is created and the first customer is signed up. And then have the vision to convert it into a marketable and sales product.

Of course, in the midwest, VCs label themselves VCs, in reality, they are just another product of the world of M&A. I guess this will always be the midwest mentality. I challenge every VC to think if they truly are VCs. If you think you are, then ask yourself, why aren't there more entrepreneurial activites in Chicago? A city with lots of culture, smart people, and great schools? My guess is that the entrepreneurs really do not have the path to get to the tools they need and the support structure to create and innovate.

[mbmccall]

I agree that there needs to be more seed and early stage activity here. There also needs to be more spinouts from either existing success stories or larger corporates like Motorola.

That said, I would push back on the generalization that all Midwest VC's are in the late stage or buyout world. Illinois Ventures, Arch Venture Partners, Apex, OCA, just to name a few have been active seeding companies. In our case (DFJ Portage), 50% of our Midwest deals are seed including Feedburner and Performics and all but 1 or 2 have been early stage fundings.

This region is slowly but surely building out both the entrepreneurial base and the early stage VC community. We all agree that we wish it would occur more rapidly!