Hoosier Entrepreneurs Earn Invitation to White House as Startup Climate Warms

Indiana's strong business climate and favorable cost of living is making the Hoosier state a popular place for startup businesses. As this blog and BizVoice feature about DeveloperTown convey, Silicon Valley doesn't have much on the budding ideas and energy emanating from the heartland — especially in Central Indiana. Tuesday, five Indiana entrepreneurs are meeting with White House staff in Washington, D.C. about how to make Indiana's startup climate even better. Below is an excerpt from a press release, as well as background on Indiana's representatives as written by Kevin Hitchen of Localstake.

Startup leaders from across the country will convene in Washington, D.C. on February 5th to meet with administration officials to discuss the importance of fostering vibrant startup communities throughout the U.S. These Startup America Region Champions will also unveil their regions’ plans to push their startup ecosystems to the next level. Representatives from the Small Business Administration, Office of Science and Technology Policy and the Department of Commerce will take part in the meeting. 
Participating regions include: Startup Arizona, Startup Colorado, Startup DC, Startup Indiana, Startup Iowa, Startup Maryland, Startup North Carolina, Startup Nebraska, Startup Tennessee, Startup Texas and Startup Virginia. This meeting will be preceded by the Kauffman Foundation’s State of Entrepreneurship luncheon and followed by a reception hosted by Startup DC at the brand new D.C. startup hub 1776.

Indiana's representation includes:

  • Michael Coffey, who raised $2.5 in 60 days in 2010 and started a niche marketing company, moved from Napa Valley to Indianapolis because he is so impressed with Indiana's startup scene. In 2012, he became partner at DeveloperTown.
  • Kevin Hitchen is one of the founders of Localstake, a new investment marketplace that allows individuals to invest in local private businesses.  Localstake recently registered as a broker-dealer with the SEC and FINRA, so it can offer private business investing before the JOBS Act is implemented.
  • Matt Hunckler is the founder of Verge, a 2,000-member platform for software entrepreneurs in the Midwest. He leads startup efforts at Social Reactor, a premium social engagement platform based in Carmel.
  • Michael Langellier is the new CEO of TechPoint, Indiana’s technology growth initiative. He cofounded MyJibe, which he sold to MoneyDesktop in November 2011.
  • Dustin Sapp is president and co-founder of TinderBox, the third company he has helped start in Indianapolis. He has been recognized locally and regionally for efforts in entrepreneurship.

Crowd-funding a Hot Topic for Government, Businesses

Legislation is going through the United States Congress to make it easier for small businesses in America to benefit from crowd-funding. The Wall Street Journal blog relays:

The U.S. House advanced legislation this week that would make it easier for smaller companies to raise money from investors.

House lawmakers, in overwhelming bipartisan votes, completed work Thursday on four bills as the measures drew interest in the Senate. President Barack Obama also signaled support for at least one of the bills.

Among other things, the House by a vote of 413-11 approved a bill to make it easier for companies to advertise private offerings with wealthy investors and voted 407-17 to allow startup companies to raise up to $10,000 from individuals over the Internet.

Supporters hope the bills, if signed into law, will help small firms grow in size and hire new workers.

Sen. Kirsten Gillibrand (D., N.Y.), who is weighing introducing capital formation legislation in the Senate, said there is widespread need for Congress to act. “Everywhere I spend time across the state I talk to small business owners and entrepreneurs that need access to capital to grow and create jobs,” Ms. Gillibrand said.

The advertising provision would end a Securities and Exchange Commission ban on “general solicitation” that effectively limits the ability of companies to reach out to potential new investors. “Under the current ban, if you have a good idea but you don’t have a prior relationship, it cuts off a whole section of investors,” said Rep. Kevin McCarthy (R., Calif.) said in an interview.

The Internet bill would allow startups to use “crowd-funding” methods to tap thousands of investors for very small amounts of shares without the firm having to register first with the SEC. Introduced by Rep. Patrick McHenry (R., N.C.), the bill would allow startups to raise up to $2 million through Internet solicitations and social networking and online sites designed for capital raising.