$15MM startup fund launched in West Michigan | Hacker News Reader

$15MM startup fund launched in West Michigan

startgarden.com

38 pointsschaapy23 comments

Regardless of the nitty gritty details, I think the most important part about something like this is that places like Grand Rapids are thinking of this. They're putting money, time, resources, and energy into helping propel this kind of entrepreneurial/startup thinking forward.

Its success by itself remains to be seen, but this program's small contribution to the overall rising tide is for sure.

Fantastic idea, really like the idea of a micro-investment. I have a ton of ideas that I'd love to get off the ground, and could do so in a month or two, but I can't afford to stop taking freelance work. $5,000 is enough to keep the lights on. I'll probably try submitting an idea or two, see what happens.

And, as a guy who spent my first 20 years in Michigan, happy to see this sort of thing sprouting there! Flying to Grand Rapids from Boston isn't very expensive, and I could even hop north and sneak in a quick visit with my family.

Rick DeVos also started http://www.artprize.org/. It's good to see things happening in the midwest.

I spent a day in Grand Rapids last year, very impressed with the tech scene there. A lot of bright folks, good companies, beautiful mid sized city, and a surprising lean focus.

Go StartGarden! I hope we can cop some of GR's vibe here in St. Louis.

Also the micro-funding concept is brilliant, great way to draw out the hidden midwest talent

Might you be more easily impressed than most HNers, coming from StL? Or have you got to know one of the big startup hubs? Also I'm curious what you did in a day to get a feel for it. I've spent a week in SF so far but I don't feel that I have a good grasp of what it's like there. If you have insight into how to quickly check out a city's tech scene, please share.

I have really mixed feelings about this idea. The single biggest impediment to startups in Michigan is lack of angel investors.

I wish them luck, but have to think if that much money was invested in Michigan startups through a mechanism such as angel list the overall benefit would be much, much greater.

Rules are that you have to have a Michigan, LLC to receive it and do a presentation 60-90 days later. Sounds like anyone can do it, just have to buy the plane ticket there to present. No obligation to be at their location or have a "office" in Michigan.

Here's an idea from a local Ruby dev that imho is worth voting on: http://startgarden.com/ideas/detail/mastermind

This is great for the region (Grand Rapids/Western Michigan). I just wonder if the supporting infrastructure/resources for a tech hub are there.

I knew there was a West Virginia, but I did not know there was a West Michigan!

cultural insight: west michigan is what west michiganders call themselves to distance themselves from Detroit.

Bingo. I'm originally from Northern Michigan - technically Northern Lower Michigan, to distance ourselves from the crazy backwoods folk in the UP, and from the run-down big city craziness of Detroit and Lansing.

...and yoopers call us trolls because we live "under the bridge."

To be fair, other Michiganders call it West Michigan to distance themselves from West Michigan as well.

Hey, you have a problem with the VanDerVosses?

i don't think that distance is the right word there, more like differentiate. michigan is a big diverse state. i think it is more so geographic shorthand

See: Northern California(http://en.wikipedia.org/wiki/Northern_California), South Jersey (http://en.wikipedia.org/wiki/South_Jersey), etc.

I predict Grand Rapids will be a software powerhouse in the next 10 years.

Excited to see what we can all create together!

am i understanding the contract correctly that they want 3% for a $5000 investment?

That looks right. I mean, it's not too far off from YC's 6% for ~12k, but I'm curious as to whether the rights they spell out affect that in any way, particularly with dilution.

If you look at YC's FAQ page it says $17K for a single founder. For 3%, $5k total seems low to me. For two founders that would be $2.5k each.

I must be remembering old data (or have just had it wrong). Thanks for the correction.

Regardless, generally speaking, the money isn't the thing that drives deals like this, it's the mentorship and exposure. In this case though, it sort of seems like a "Here's $5,000, come back with something useful, and we'll think about talking to you" sort of scenario, so I can't help but wonder about its usefulness.

I mean, it might work, and if it does, could be great for the area, but it doesn't appear to be modeled after any of the most successful incubators.

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