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In an article for EQ, LendEDU's Nate Matherson argues that 2018 will be a great year for Midwest startups.
"There are a lot of economic reasons that starting a business in 2018 will give you a higher chance of success — especially if you’re opening a business in the Midwest," he writes.
It doesn't hurt that the overall economy is getting better (the recent DOW news notwithstanding).
"It’s taken a long time for our economy to recover from that slide, but it’s finally starting to grow again — and at a quick pace," he continues.
The cost of living in the Midwest is also low.
"Fewer expenses means more disposable income," Matherson continues. "That in turn means more money that entrepreneurs can invest in growing their businesses, and more cash that their customers are happy to spend buying from them. It also means higher profit margins on the back-end — which kicks off the whole cycle all over again."
Perhaps more importantly, access to capital for small businesses is on the up and up. Matherson specifically sites the Small Business Lending Index, which reported that lenders increased loans in 11 of 18 industries, and those small businesses are handling those loans responsibly. "And lets not forget, venture capital and angel investment has been getting increasingly hot for Midwest startups," he continues. "Traditional tech investors are moving money from the coasts and into Midwest cities like St. Louis where there are lower human capital costs. In particular, Venture Funds like Lewis & Clark Ventures are breaking the “$100M” ceiling to invest major A and B round capital in Midwest startups."
