MidxMidwest and the State of Venture Capital in 2024

Startup Hustle

In this episode, Matt Watson interviews Dan Kerr from Flyover Capital, discussing the evolving landscape of venture capital in the Midwest, particularly in Kansas City. They explore the importance of networking for founders, the structure of the upcoming Mid-by-Midwest event, and the changing dynamics of funding, including the rise of debt and royalty financing.

Dan shares insights on Flyover Capital's investment strategy, the challenges startups face in revenue generation, and the growing variety of investment options available in the region. The conversation highlights the advantages of the Kansas City startup ecosystem and the role of offshore development teams in modern business.

Takeaways
Networking is crucial for founders looking to raise capital.
The Mid-by-Midwest event is designed to connect founders with investors.
Debt and royalty financing are becoming more popular alternatives to equity.
The VC market in 2024 is more selective and cautious than in previous years.
Flyover Capital focuses on investing in undercapitalized regions.
Local investors often take on more risk with Kansas City-based companies.
Startups need to generate revenue to attract investment.
The Kansas City startup ecosystem has evolved significantly over the past decade.
There are now more investment options available for startups in the Midwest.
Offshore development teams are increasingly common among startups.

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This episode is sponsored by Full Scale:
https://fullscale.io/

Find out more about Flyover Capital here:
https://www.flyovercapital.com/

Learn more about Dan Kerr here:
https://www.linkedin.com/in/dankerrkansas/

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Sound Bites
"How much money you got for us today?"
"This is year number three."
"It's a nightmare to reach out to all these different VC companies."

Chapters
00:00 Introduction to the Midwest VC Landscape
03:05 The Importance of Networking for Founders
05:58 Event Format and Structure
09:06 Understanding Debt and Royalty Financing
11:57 The Changing VC Market in 2024
15:05 Flyover Capital's Investment Strategy
18:01 The Role of Local Investors
21:10 Challenges for Startups in Revenue Generation
23:59 The Evolution of the Kansas City Startup Ecosystem
27:00 The Growing Variety of Investment Options
29:51 The Value of Offshore Development Teams
33:05 Conclusion and Event Details

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