Why Midwest? Why Now?
For decades, the Midwest has been referred to as “flyover country”—a region often overlooked by venture capitalists and innovators focused on the coastal cities. But in recent years, that perception has been changing. The Midwest has begun to emerge as a critical hub for entrepreneurship, innovation, and grassroots movements. The region is primed for growth, and founders here are demonstrating that some of the most exciting new ideas and businesses can come from what many have underestimated. So, why the Midwest, and why now?
1. Untapped Potential and Resilience
The Midwest has always been known for its work ethic and resilience. Entrepreneurs in the region have honed a unique ability to build businesses in environments that are less saturated with venture capital than places like Silicon Valley. In fact, only 0.05% of startups nationwide raise venture capital and most founders in the Midwest rely on their own personal savings or local networks to get started. This has led to a spirit of ingenuity and adaptability—founders here know how to stretch a dollar, maximize resources, and create real value.
That resilience, coupled with lower operating costs and an abundance of talent, has allowed many Midwest startups to not just survive, but thrive. Cities like Kansas City, Omaha, and St. Louis are increasingly recognized as hotbeds of innovation. According to the Kauffman Foundation, entrepreneurial growth rates in the Midwest have outpaced those on the coasts in recent years. This is a powerful indicator that the region’s potential is only beginning to be tapped.
2. Access to a Rich Talent Pool
The Midwest is home to some of the best universities in the country, churning out graduates with advanced degrees in engineering, business, and technology. These graduates often prefer to stay in the region, attracted by the lower cost of living and quality of life that the Midwest offers. The talent pool is deep and diverse, yet traditionally underutilized.
Unlike coastal cities, where competition for talent is fierce and turnover rates are high, Midwest startups have access to loyal, highly skilled workers. This gives founders a significant advantage in building and retaining strong teams—something that can make or break a startup in its early stages.
3. Lower Costs, Higher Impact
It’s no secret that the cost of living and operating a business in the Midwest is significantly lower than in the coastal hubs. In Silicon Valley, startups often burn through millions of dollars just to stay afloat due to high real estate costs, expensive talent, and the pressure to scale quickly. In contrast, Midwest startups can operate with a fraction of the overhead while maintaining a high quality of life for their employees.
This lower cost environment allows founders to focus on building sustainable businesses rather than chasing rapid growth just to satisfy investors. The Kauffman Foundation notes that nearly 83% of entrepreneurs across the U.S. don’t have access to traditional venture capital【29?source】, and in the Midwest, this often leads to more creative and efficient business models. Founders are building businesses with strong foundations that don’t rely solely on external funding to survive.
4. A Thriving Support Network
Another reason the Midwest is becoming a hub for entrepreneurs is the growing support network. Organizations like Pipeline Entrepreneurs are fostering a new wave of founders by providing mentorship, resources, and community. In cities like Kansas City and Omaha, there is a strong emphasis on collaboration rather than competition, which creates a fertile ground for innovation. Local governments, universities, and business leaders are all working together to create an ecosystem where startups can flourish.
Furthermore, the rise of remote work has made it easier for Midwest founders to connect with investors, customers, and partners across the globe. With less reliance on physical proximity, the Midwest is no longer viewed as “too far away” from the action. In fact, many entrepreneurs are choosing to build their businesses here precisely because of the balance it offers between professional opportunities and personal quality of life.
5. Timing is Everything
There’s no denying that the time is right for the Midwest. The region has gained national attention for its economic growth, innovation hubs, and the success of its startups. As the cost of living continues to rise in traditional tech centers, many entrepreneurs and investors are looking to the Midwest for opportunities that offer higher returns on lower investments. The region’s potential is finally being recognized, and founders here are capitalizing on the moment.
The Midwest’s time is now, and the opportunities for entrepreneurs are vast. As investors continue to diversify and seek out new markets, the region’s innovative spirit, deep talent pool, and supportive ecosystem will only grow stronger. For those willing to build from the ground up, the Midwest offers an unmatched combination of resources, community, and potential.
At Pipeline, we’re here to support the bold entrepreneurs who are ready to seize this moment. We believe that the Midwest is more than just the heartland—it’s the heart of the next wave of innovation.