TECHdotMN: News about Minnesota Startups

Minnesota tech entrepreneur Dana Severson began crowdfunding experiment Wahooly last fall after identifying a widespread “chicken and egg problem in terms of startup traction and funding.”

Wahooly was original enough to build some quick buzz,  strategic partnerships, tens of thousands of early adopters (4:00), and notable launch in February.

Although the site crashed and burned within the first week, the only thing Severson quit was his day job.  Over the following 90 days, Wahooly would come back with validation and cash.

Severson is the first to admit that Wahooly has a long way to go, but he’s already crossed the hardest entrepreneurial line of them all: doing.

TECHdotMN: When asked about a theme which you felt was most relevant to your experiences as an entrepreneur so far, you chose “jumping”. Why?

Read More…

Tech entrepreneur Justin Kaufenberg co founded TST Media with Carson Kipfer circa 2008 after the spinning out what is now their flagship product, NGIN, from a service-oriented web business they originally formed in 2005 while attending college.

In 2009, the company raised an initial $1m round of funding from Twin Cities Angels and more recently, landed $3.5m series B led by El Dorado Ventures.

Throughout the fundraising, customer and employee growth — the firm has made two acquisitions, the latest of which was WSN from TDS earlier this month.   We’ve since caught up with him to learn more about these maneuvers and hear what it’s been like from an entrepreneurial point of view.

Read More…

Tech entrepreneur David Bagley co founded enStratus in 2009 with George Reese to provide an infrastructure management platform for enterprise applications in public and private clouds.  The venture was self-funded at the onset and picked up some nominal angel funding this year before landing a $3.5m series A round with local VC El Dorado.

Of course, much of enStratus’ fundraising success thus far can be attributed to tangible milestones:  forming local partnerships while gaining international customers and acquiring industry recognized talent.

TECHdotMN: We were talking about your recent fundraising round and when asked about a theme that stuck out in your mind, you said “bootstrapping”. Why?

enStratus is a b2b software company in an emerging market – and two of the hardest problems facing a company like us are first the challenge of identifying the hard problem that others will pay you solve to solve, and then secondly the challenge of correctly pacing the market. The great virtue of bootstrapping a company is that it forces you (and your prospects) to address these two issues head on from the get-go, there is no room for theory or excuses if paying the bills depend on finding a problem that a company is willing to pay you to solve right now.

Read More…

Tech entrepreneur and startup CEO Corey Thompson has devised a plan to improve efficacy of knowledge transfer and retention in the classroom.   Beyond the tens of thousands of K-12 students which currently use Naiku’s  SaaS assessment tool, the venture has captured the hearts and minds of many — including the Minnesota Cup, Project Skyway, and TEKNE.  Most recently, the startup closed on a $320k first round of equity financing from local angel investors.

When asked about a timely theme that resonated with where you’re at on the entrepreneurial journey, you chose “focus”. Why?

It requires significant effort for a new company to maintain focus – and to not chase bright lights.

Read More…

Tech entrepreneur Rashaun Sourles originally brought Qualtrx to life in Minnesota a year ago in response to an unexpected career change. He’s since navigated the perils of recruiting a co founder, attracting a development partner, and has been doing a national roadshow to bring attention to his vision for a disruptive healthcare platform. His plan has been receiving validation from the local community and Qualtrx has taken the first big step towards market acceptance with recent pilot introduction through Minneapolis’ own HCMC.

TECHdotMN: Initially, you intended to reflect on the concept of ‘listening’. Then, you changed your mind to ‘storytelling’, which is essentially the exact opposite, isn’t it?

In my mind’s eye, I guess listening and storytelling are two sides of the same coin. I don’t think any of us knows ‘intuitively’ what story we should be telling and when, since storytelling should be focused on one’s audience, and not ourselves. Listening–full and active listening–is the art of paying respect to your audience and telling the story that resonates with their mindset. I mean, you tell your grandmother a very different story than you tell an angel investor. But only by listening to the reactions you get do you even begin to recognize how to segment your audience.

TECHdotMN: So, what is your story?

Read More…

Tech entrepreneur Darren Cox has been laboring for over a year to bring his startup CaSTT to life.  His journey began last fall with negotiations to license the core IP from the U of M’s OTC, a process that was finalized by February.  Fast forward to this October 2011 and CaSTT would go on to successfully close a $600k round of financing.

TECHdotMN: on a scale of 1 – 10, how would you rate the challenge associated with closing this first round of funding and why?

I don’t think there is anyone going out, hat-in-hand to raise money, who would say the process is anything but agonizing.   I would rate the challenge as a 5 for us — but we had some advantages that would be difficult to replicate.  It would probably have been lower (easier) than that, but a couple of potential early investors who were not as honest and helpful as the appeared to be the first time I met them.  I wish I had said, “If I take these steps, will you invest?”

Read More…