Partnerships central to building Midwest startup success

Collaboration among entrepreneurs, business sectors, and regions in the state—as well as across state borders—is they key to building a world-class Midwestern startup ecosystem across a variety of tech-related fields, experts say.

A panel at Milwaukee’s Summerfest Tech in late June examined ways in which the Midwest can tap into its strengths to foster “startup corridors” to build the economy.

Elaine Coughlin, WEDC’s startup ecosystem director, told an audience that the Midwest is able to draw on a culture of hard work and lower costs of living, but emphasized the importance of partnerships and relationships.

“We’ve always had this idea that we can’t compete with the coasts, and it is hard,” she said. “We are different than the coasts in a lot of great ways, and we have access to things like connections and capital.”

Coughlin, whose role is working with founders, companies, and the ecosystem that supports them, believes a collaborative ethic is growing and will nurture success.

“From my perspective in the Midwest, I see us looking to collaborate more than we have,” she said. “I think we’re on our way. I don’t think we’re trying to be anything we’re not. We know where our sweet spots are. I see us and other ecosystems in our regions looking to connect with other states in the Midwest.”

But there remain some cultural obstacles in trying to compete with the coasts in economic development, said John Roach, president of the Indianapolis-based consulting firm Resultant. Roach believes that a strong startup culture depends on capital, talent, and disposition toward risk.

In the San Francisco Bay area, for example, Roach said investors have a greater appetite for risk.

“They’re slinging money at a lot of ideas, but they expect to lose most of the time. They expect to strike out a lot, hit some singles, and hit some home runs,” he said. “In the Midwest, it seems like capital is always trying to hit really safe doubles.”

On the talent side, Roach said that with personal mobility on the rise due partly to remote work, people are migrating to places where they want to live. “I think it’s our job to create a place that’s awesome to live,” he added.

He cited the success of Columbus, Ohio, where the German Village has drawn nationwide attention. The walkable, historic neighborhood near downtown is lauded as a model for other cities.

Coughlin said WEDC’s Ignite Wisconsin program—which offers funding support for startup ecosystems via consortia based in regions across Wisconsin—aims to boost state entrepreneurship and strengthen business ties.

Regionally, Coughlin said borders too often create silos, and she sees the future in cross-state collaborations to build even more durable partnerships and opportunities for founders.

“I think some people have a fear of, ‘Well, you’ll just take my talent. You’ll take my founder. You’ll get the credit for that,’” she said. “So, I think it we can all just get back to our Midwest roots and say, ‘OK, we can all share. It’s OK.’ I think we would all see more alignment in that way.”

Coughlin stressed the importance of personal relationships and networking as powerful tools to build ecosystems and community that can unlock success.

“The tide raises all boats, but everyone does have their own agendas, and I think that is something to navigate and that’s back to just be in-person and building relationships,” she said.

“Keep talking to each other and finding your people. … Get out of your comfort zone. Go to places, find other networks and communities, go to conferences. The more people you talk to, the more you learn.”