>If you are profitable... you can raise venture capital in the Midwest
This is the number one biggest difference between Midwest startups and SV startups. Even Basecamp said it, Midwest startups have to prove their profitability on day one before any VC will pay any serious attention. Whereas in SV, you can get money with just a team and a Powerpoint presentation.
Wonder why there are no unicorns from the Midwest? Because if unicorns made money their valuation would be significantly lower. They're only unicorns because no one knows how much they're worth, and everyone knows exactly how much Midwest startups are worth on day one.
This is the number one biggest difference between Midwest startups and SV startups. Even Basecamp said it, Midwest startups have to prove their profitability on day one before any VC will pay any serious attention. Whereas in SV, you can get money with just a team and a Powerpoint presentation.
Wonder why there are no unicorns from the Midwest? Because if unicorns made money their valuation would be significantly lower. They're only unicorns because no one knows how much they're worth, and everyone knows exactly how much Midwest startups are worth on day one.