On a scale of (0)
most disagreement, to (5) neutral, to (10) most agreement, please
indicate how strongly you share a view.
Advantage: An advantage of the Minnesota economy is its
attractiveness to venture capital firms, who favor start-up,
Minnesota should support entrepreneurs by assuring the state has good
roads, schools and cultural institutions and no unnecessary hurdles
7.5 average response
While important, the level of taxes is not the most factor when it
comes to encouraging venture capital and start-up firms.
6.5 average response
Technology: Venture capital in Minnesota seems to favor start-ups in
medical technology over other business areas.
John Milton (10)
(10+) (10) (2.5)
Excellent forum on critically
Arvonne Fraser (9)
(10) (10) (8)
Having invested--perhaps too
heavily--in our son's health care technology businesses, I'm very
interested in this subject. I'm a bit sad that the angel tax credit
doesn't include smaller investors like us who invest in the very early
startup phase, but so be it. Am more interested in Carr's comments
about the needed and important infrastructure, including education,
that are essential and generally provided by government and taxes,
hence my high agreement on this meeting.
(6) (8) (5) (8)
Chris Stedman (10)
(10) (10) (5)
The first three questions seem to be
almost of a common sense in their nature.
1. Minnesota Advantage: The
Minnesota economy seems to have always done better than many of our
surrounding regional counterparts in terms of not peaking or dipping,
but remaining relatively stable and strong, even in down economic
times. This can somewhat be accredited to our strong SMB climate.
2. Strategy: Detroit (in example)
does not currently have the sustainability that Minneapolis/St. Paul
does, thus being more enticing for VC’s.
3. Taxes: I highly doubt any
business start-up says “I would have looked into opening my own
business, but the taxes would be so high, it wouldn’t be worth it”. If
they do, then maybe it was more of a pipe dream, than a serious
business case or platform. And maybe running their own business isn’t
what they are best suited for.
4. Medical Technology: I don’t
believe that they “favor” medical. We do have a strong Medical
segment, and it is a huge industry vertical. So it only makes sense
that the VC’s would be interested in that investment. I would assume
that across the country, other regions are strong in other Verticals.
That doesn’t mean that the VCs will focus on or favor those segments
over others in that area.
Wayne Jennings (8)
(10) (10) (5)
One revealing remark was that some
high-tax, high-cost areas (California, NY, Boston) attract business
and capital. We shouldn’t put too much stock on the high tax
disadvantage of Minnesota.
Charles & Hertha Lutz
(9) (10) (9) (8)
DeWayne Townsend (6)
(8) (9) (9)
I think bio-diesel is becoming a bit
of a venture capital darling.
Paul and Ruth Hauge
(5) (8) (8) (6)
Terry Stone (7) (7)
Ray Cox (8) (10) (5)
I think the legislature made a huge
mistake in their recent venture or “angel investor” legislation when
at the last minute they added the words "a natural person". This
eliminates the tax advantage for anyone that wishes to use trust
funds, retirement funds, etc from the plan. I participate in a Rain
Fund. We have a few members who fund the contributions using trusts or
retirement funds. Because of that our whole Rain Fund group is
eliminated from the tax preferential plan.... and therefore less
willing to look at some deals.
Jan Hively (9) (9)
Bright Dornblaser (10)
(10) (8) (5)
3. Taxes: We need to learn why MN
dropped from no. 1 to no. 3 in the Wall Street Journal's Market Watch
in 2009 vs. 2007 and 2008.
Tom Swain (7) (9)
Tom Spitznagle (5)
(9) (5) (7)
Bob White (7.5) (10)
Peter Hennessey (5)
(10) (2.5) (5)
Advantage: I have no idea of the VC market in MN. But I would hope
that MN like all States would have the good sense to encourage
3. Taxes: Taxes, both
in the amount and in their complexity, are major burden and deciding
factor in start-up or relocation.
4. Medical Technology:
I have no idea. Maybe VC's are looking for start-ups that won't or
can't go offshore?
Chris Brazelton (10)
(10) (10) (7.5)
1. Minnesota Advantage: And we
should continue to market this to the world.
4. Medical Technology: Strong
companies like Mayo Clinic and Medtronic attract other
like-businesses. That doesn't mean we favor them, just that we're
known for some of the most successful.
Donald Anderson (7.5)
(10) (10) (7.5)
Dave Broden (5) (10)
1. Minnesota Advantage:
The statement during the conversation did not fully confirm that ALL
venture capital firms are OK with the way Minnesota is operating or
the business segment interfaces. I feel that their needs to be further
dialogue with others knowledgeable on the subject of venture capital
firms in Minnesota before this answer is addressed.
2. Strategy: Business
and quality people come to have strong infrastructure and related
3. Taxes: True but the
overall image must be positive and expressed in a professional and
effective method. The plan of Itasca suggests that this may be the
case that will be evolving.
4. Medical Technology:
This continues to be a possible bias and needs to be clarified. Too
often I heard from people who say Minnesota is not a state for a
certain type of technology or business because all they want is one or
Mark Haveman (10)
(10) (7.5) (7.5)
3. Taxes: But that's
because his membership likely organizes, as C corps but do not pay
corporate income taxes because they don't make a profit. I would
strongly suspect that if Mr. Carr’s membership was experiencing a VAT
or alternative entity based tax, he might not be so sanguine about the
level of business taxation in the state.
Bob Brown (5) (10)
Advantage: Some venture capital firms are great, but others want too
much control of companies, which can be detrimental to the success of
W. D. (Bill) Hamm
(2.5) (10) (2.5) (7.5)
1. Minnesota Advantage: Very little
to none of your venture capital is doing anything to help non-metro
start ups. In fact there is some indications that venture capitalists
in Minnesota are using their money to undermine our rural economies as
part of a greater social engineering scheme.
2. Strategy: While this statement
rings quit true on the face, our roads are still declining due to
falling state revenue in spite of a major fix a couple years back that
has been of little or no help. You still continue to back Socialist
education over a return to local control that once made our education
system famous, so without redirecting control of education there will
be no improvement. While I support "culture" I do not necessarily
support your concept of helpful cultural institutions. Please define
"necessary hurdles for business".
3. Taxes: It is a very important
issue to all but our undermining Socialist core.
4. Medical technology: Not only just
medical start-ups but metro start-ups in general. Without a statewide
effort you doom us to failure.