Minnesota seeks to grow startups alongside Fortune 500s

Minnesota is known for having many Fortune 500 companies, but leaders are concerned about the lack of new startups. With this in mind, Peter Frosch, the CEO of Greater MSP, spoke about the future of the economy in the Twin Cities. He emphasized the need for partnerships and funding to develop a new generation of businesses. Despite having the highest number of Fortune 500 companies per capita in the U.S., Minnesota has not seen a new one emerge in years. Mary Grove from Bread & Butter Ventures highlighted the urgency to grow the local business scene. Bread & Butter recently announced a $40 million fund to support startups in health care, food technology, and software. Venture capital investment has dropped significantly, making it harder for local companies to secure funding. Many investors focus on startups located on the coasts. Grove and others believe Minnesota has untapped potential, but local companies like YourPath Health have relied on funding from outside the state. To strengthen connections between large businesses and startups, Bread & Butter launched the Innovation Circle. This initiative includes major companies such as 3M, Target, and Mayo Clinic, willing to collaborate with startups. However, the challenge remains in attracting outside investment to build a new Fortune 500 company. Matt Lewis from Greater MSP said that to attract more capital, pitches need to show strong returns, not just community benefits. They are focusing on important issues for the region, like sustainable technologies. In doing so, they aim to encourage local investment in venture capital to support new business growth.