Is Minneapolis a Good Place to Launch a Startup?

Where you start your company still matters – but sticking too closely to one location might limit what you’re able to build. In today’s startup landscape, geography shapes your path – but it doesn’t have to define your potential.

Minneapolis has emerged as a strong hub for entrepreneurship, offering access to funding, talent, and infrastructure. But with growing competition, rigid local programmes, and support often reserved for the most polished startups, relying solely on what’s nearby can slow you down – or hold you back.

In this article, we’ll explore what Minneapolis gets right – and where founders often run into friction. We’ll also show how EWOR offers an alternative: a global, remote-first platform that gives you access to funding, mentorship, and community – no matter where you’re based.

1. Access to Funding in Minneapolis

Funding is one of the most critical ingredients in building a successful startup – and Minneapolis offers a growing ecosystem of support. From venture capital firms to government grants and angel investors, founders in this region have several pathways to raise capital and gain early traction.

Minneapolis has a developing early-stage funding scene with several active players. Notable VC firms investing early include Bread and Butter Ventures and Matchstick Ventures, among others like Brightstone Venture Capital and Arthur Ventures which also participate in early rounds. Angel networks like Gopher Angels are also active, connecting accredited investors with startups. Government support is available through initiatives like Launch Minnesota, offering innovation grants, and the Minnesota Department of Employment and Economic Development (DEED) with various loan and investment programs. The University of Minnesota's Discovery Capital program also co-invests in university-affiliated startups. However, challenges exist. While Minnesota saw a surge in VC investment in recent years, reaching a record $1.5 billion in 2020 and 175 deals in 2021, 2023 saw a drop to $1.2 billion across 172 deals, the lowest amount raised since 2017. Early-stage funding specifically remains a barrier, particularly for founders lacking strong referral networks. Investors have become more selective, focusing on companies with better financial stability and profit metrics. Despite these hurdles, the ecosystem continues to grow, with resources aimed at supporting new businesses.

A More Flexible Path Forward

In the wake of these challenges, founders don’t have to rely solely on local funding options. EWOR offers a more flexible path – providing up to €500,000 in early-stage capital But EWOR is more than a cheque. Our capital comes bundled with personalised support, investor-ready storytelling, and access to a network of over 400 active European investors – many of whom regularly participate in our Grand Pitch events. On average, EWOR fellows who complete the programme and pitch go on to raise €2 million in follow-on funding – over 10x more than founders from comparable European initiatives.

2. Innovation and Startup Culture  

Minneapolis has become a centre of innovation, with numerous tech hubs, coworking spaces, and accelerators that foster creativity and new ideas. The local startup culture is vibrant, with a growing community of entrepreneurs working together to push the boundaries of what’s possible.

Minneapolis has a thriving startup and innovation culture, ranking 17th in the U.S. for its ecosystem. The city boasts numerous coworking spaces like Industrious, WeWork, and Coco, catering to various needs. A strong calendar of tech and entrepreneurial events exists, including Twin Cities Startup Week, Minnebar, and various meetups and conferences. Entrepreneurial activity is significant, with a growing tech sector contributing substantially to the local economy. While there are standardized programs like MN Cup and accelerators, initiatives like Launch Minnesota and resources from the University of Minnesota's Holmes Center offer support for early-stage founders through grants, mentorship, and education, alongside resources for more mature startups.

For many entrepreneurs, the energy and resources available in Minneapolis can provide the ideal environment to test new ideas and gain early traction. The collaborative atmosphere allows founders to connect with fellow innovators and build networks that can help their startups grow.

While the local startup culture is vibrant, the support founders actually receive can be hit or miss. VCs might offer funding but little time. Angel investors often give advice, but it’s scattered and inconsistent. What’s more, many accelerators rely on a one-size-fits-all model that doesn’t reflect the needs of exceptional founders. In fast-moving, competitive ecosystems like Minneapolis, standing out is hard enough – getting the right kind of support shouldn’t be.

The Alternative to Cookie-Cutter Programmes

Finding a programme that truly adapts to your journey, not the other way around, is rare. However, EWOR offers the kind of depth and flexibility that many local programmes simply can’t match. Instead of following a fixed curriculum, our fellowships are modular and tailored – giving you the right support at the right time, based on where you are in your journey.

But the real strength of EWOR goes beyond structure. Fellows often describe the community as the most unexpected – and valuable – part of the experience. As some have put it: “The real magic lies in the community: the kind of conversations, insights, and connections that lead not only to breakthroughs – but to lasting friendships with some of the most fascinating people they’ve ever met”.

3. Talent and Workforce Availability

One of the greatest assets of launching a startup in Minneapolis is access to a skilled and diverse talent pool. With universities producing top-tier graduates in technology, business, and other fields, startups can tap into a wealth of expertise to help grow their teams.

Minneapolis has a strong talent pool for startups, fueled by numerous educational institutions like the University of Minnesota and Minnesota State colleges, which produce a skilled workforce. The city's key industries, including healthcare, technology, finance, and manufacturing, provide specialized expertise relevant to many startups. A high percentage of graduates remain in the region, contributing to the local talent pipeline. The supportive startup ecosystem, with initiatives like Launch Minnesota and various accelerators, connects entrepreneurs with experienced professionals and resources, fostering growth.

Like funding, competition for talent can be fierce, especially for highly specialised roles in fields like software development or AI. For startups looking to scale quickly, hiring the right people at the right time can be a challenge, leading some founders to look outside the region for remote talent solutions.

Get Global While Local

While hiring locally in Minneapolis can be competitive and slow, EWOR gives you instant access to a global network of exceptional talent. Built by founders for founders, the EWOR team has launched and exited companies worth over €12 billion – and they bring that experience directly into your venture. It's not just about funding or surface-level advice; it's akin to having a co-founder from day one. 

The team collaborates closely with you to refine your idea, challenge your thinking, and support you through real-world decisions – just like a hands-on partner would. Moreover, with EWOR’s exclusive co-founder pool, you can find the right person to build with, regardless of their location.

4. Infrastructure and Support Systems

Minneapolis boasts a strong infrastructure that supports the growth of new businesses. From modern office spaces to high-speed internet, entrepreneurs have access to everything they need to run their startups smoothly. Government policies may also provide tax breaks, legal support, and other incentives that make starting a business more attractive in this region.

Minneapolis offers a robust infrastructure for startups, including numerous accelerators and incubators like BETA, Techstars, Gener8tor, and Lunar Startups, many with specific industry focuses such as health tech or food tech. These programs provide mentorship, resources, networking opportunities, and access to capital. Co-working spaces also contribute to the ecosystem. Government initiatives, primarily led by Launch Minnesota (an initiative of the Minnesota Department of Employment and Economic Development - DEED), play a significant role. Launch Minnesota offers Innovation Grants for technology startups, including funds for operations and matching federal SBIR/STTR grants. They also promote the Angel Tax Credit to encourage private investment. The City of Minneapolis provides business assistance and financing programs. These combined resources help startups access funding, expertise, and networks crucial for growth.

But what looks good on paper often proves more complicated in practice. Bureaucracy can be time-consuming and opaque, especially for first-time founders unfamiliar with local laws. Incorporation takes longer than expected. Accessing public funding often means navigating slow processes, strict requirements, or hard-to-reach advisors. And operational costs – from accounting to regulatory compliance – can quickly eat into early budgets. 

A System That Moves With You

With access to expert guidance, practical legal resources, and a network of experienced entrepreneurs who’ve built across a range of regulatory systems, EWOR is well positioned to help founders navigate the bureaucratic and legal complexities that often come with building in Minneapolis. Instead of wasting time figuring things out alone, you’ll have the tools and support to stay focused on what matters most – growing your venture.

And while we’re remote-first, our support is anything but distant. Through in-person gatherings like the EWOR House, city-based meetups, and our twice-yearly Grand Pitch event, you’ll still build meaningful relationships with investors, peers, and mentors. It’s a system that helps you focus on building – not just dealing with paperwork.

Can Minneapolis Be Considered the Best Place to Launch a Startup?

There’s no doubt that Minneapolis provides a vibrant environment for startups, with access to funding, innovation, talent, and infrastructure that can help entrepreneurs build successful businesses. For many, it’s a strong contender for the best place to launch a startup, thanks to its growing entrepreneurial ecosystem and support systems.

Entrepreneurs launching startups in Minneapolis may face several challenges. While Minneapolis has a growing tech scene and supportive ecosystem, competition exists, particularly within key sectors like med-tech and healthcare innovation. The cost of living, while considered lower than some major tech hubs like Seattle or San Francisco, can still be a factor for early-stage companies managing expenses. Regulatory issues, including navigating state and federal laws, tax obligations, and industry-specific regulations, require careful attention and can be complex for new businesses. Ensuring compliance with legal structures, contracts, and intellectual property protection is crucial to avoid potential pitfalls.

However, it’s important to remember that the location of a startup is no longer the be-all and end-all. In today’s digital age, location-independent options like EWOR allow entrepreneurs to access world-class mentorship, funding, and resources from anywhere in the world. Whether you’re based in Minneapolis or elsewhere, EWOR’s remote programmes are designed to support founders no matter where they are located.

So, while Minneapolis offers significant advantages, it’s worth considering options like EWOR that enable you to launch and scale your startup with global support – whether you’re in the heart of a bustling startup hub or working from a quiet corner of the world.

Image credits: by Andreas Brücker on Unsplash