Since we’re passionate about our city and startup culture, we previously featured a post on Toronto startups but our neighbours in the Midwestern United States also have a huge venture. Although it’s a growing market, not many people think of a “technology hub” when they think of the Midwest. More often than not, when people imagine the Midwest, they think calorie-dense, fried foods and cornfields but unfortunately overlook the emerging technology companies that are calling the Midwest states home.
In 2017, the Midwest is becoming more popular for technology startups. As found in USA Today, many venture capitalists are actually leaving California and the Bay area and moving back home. These Midwesterners are getting back to their roots in hopes to seed aging rural and manufacturing centres that were bypassed during the tech boom.
The potential energy in these cities have not yet been taken advantage of and need proper investment and appropriate venture capital interest. Many Silicon Valley ex-pats that have moved back to the Midwest have brought with them their brand of tech. Fewer entrepreneurs of the Midwest are focused on modern convenience apps for young urban dwellers and instead are taking on difficult problems for the region’s established industries. From insurance to retail to manufacturing and health care, they’re looking to find innovative solutions and bringing top talent from those industries and from Silicon Valley.
More than one-fourth of the Fortune 500 companies, 152, are based in the Midwest. This is creating a technology boom in Midwestern U.S., bringing these states to the forefront of the startup innovation. From a recent article found in USA Today, Andrew Mager says he and his wife gave up their 425-square-foot, $2,400-a-month studio apartment in the Marina district of San Francisco. When they left San Francisco, they relocated to Detroit and Mager, who works remotely as a software engineer for Postmates, says he and his wife can’t get over the expansiveness of their new three-bedroom in the Midwest. The 1,300-square-foot apartment they now have in Detroit costs nearly half what they used to pay.
Another big draw for the Midwestern states? The prospering tech scene. While it doesn’t measure up to Silicon Valley, “Detroit is exploding with opportunities and we wanted to be part of it,” Mager, 32, says.
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Frequently Asked Questions
What are technology startups in the Midwest focusing on?
Technology startups in the Midwest are primarily focused on solving complex problems in industries such as insurance, healthcare, manufacturing, and retail. Unlike other regions, these startups are addressing challenges specific to the region’s established industries, rather than focusing on consumer apps for urban dwellers.
2. Why are technology startups in the Midwest becoming more popular?
The Midwest is gaining popularity as a hub for technology startups due to its lower cost of living, an abundance of established industries, and a growing pool of talented individuals. Many entrepreneurs who previously worked in Silicon Valley are returning to the Midwest, bringing with them the knowledge and tech expertise to help revitalize the region.
3. How does the cost of living in the Midwest benefit technology startups?
The cost of living in the Midwest is significantly lower compared to Silicon Valley. Entrepreneurs and tech workers are able to invest more in their startups and enjoy larger living spaces for a fraction of the price, making the region an attractive destination for those looking to balance work and lifestyle.
4. What role do Fortune 500 companies play in technology startups in the Midwest?
More than one-fourth of Fortune 500 companies are based in the Midwest, creating a solid foundation for technology startups to grow. These companies are fueling innovation by providing opportunities for startups to solve industry-specific problems, attracting venture capital and top talent to the region.
5. How are venture capitalists supporting technology startups in the Midwest?
Venture capitalists are increasingly investing in technology startups in the Midwest, drawn by the region’s growing tech ecosystem and the opportunity to tap into underserved markets. Many venture capitalists, particularly those returning from Silicon Valley, are now focused on seeding startups in the Midwest to help drive innovation in established industries.
