The University of Minnesota and the actual state have teamed up to infuse a good chunk of venture capital money into early-stage businesses. So where’s it coming from? Who gets it?
Here’s Five Fast Facts on Minnesota’s VC Investments:
- 🕴️ Money, Honey - The $34.5M is for potential venture capital funds or direct-equity investments in seed or early-stage startups.
- 💰 Gimme the DEED - The money is coming from the Department of Employment and Economic Development (DEED). They invested $100M to support small businesses across the state via the American Rescue Plan Act.
- 👨💻 Press Start - The grants will focus on startups in the fields of life sciences, agriculture, food technology, climate technology, advanced manufacturing and science and technology. So if you’ve got a good idea for those categories, your time has come. Just remember who found the info for you. Cash is preferred.
- 🖥️ Go to College - Here’s the catch: Minnesota has a law on the books that prohibits state government agencies from direct-equity investments. That law does not apply to Universities. In other words, it’s a big loophole.
- 🎓 Smartypants - The University is doing most of the work, developing the application process, setting up an office and overseeing the selection process.
🔥Bottom line: Minnesota is certainly rounding out its business portfolio, with a program like this that’s designed to bring high-tech startups. While that may not be jobs that everyone can work, it’s still an economic boost and a way to make the state more attractive for business in the future.
Do you think this is a good idea?
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