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The Middle Bit: Week of April 16

April 21, 2017

Each week, Clay & Milk will curate a rundown of startup, tech and innovation news from “the middle.” Check back every Friday for that week’s Middle Bit.

Illinois

Ex-Walgreens CEO launches joint venture to commercialize new technologies. ChicagoInno

Groupon founders’ auto startup Drivin sold for $43M. ChicagoInno

Iowa

Survey: Midwest farmers have mixed feelings about investing in Agtech products. AgFunder News

Denim announces growing investor portfolio including RGAx and American National Insurance Company. PR Newswire

Feltes One Way wins Aging2.0 Cedar Rapids pitch competition. NewBoCo

Michigan

Comerica Hatch Detroit is looking for contestants. Detroit Metro Times

Automation Alley opens registration for Integr8 – Global Industry 4.0 Conference. MiTechNews

Minnesota

Industrious opening coworking space in the North Loop. Twin Cities Business

Investors are suing Duluth’s GeaCom Inc. for millions of dollars. Duluth News Tribune

Richfield-based Sentera, one of several emerging makers of drones, sensors and software for America’s farmers, is gaining altitude. Star Tribune

Nebraska

Fruitful Design grows into Omaha’s tech community. Silicon Prairie News

EquipmentShare brings high-tech edge to construction. Silicon Prairie News

The Middle Bit: Week of April 16 | Clay & Milk

A central Iowa ag-tech accelerator has secured more backers and finally has a name. The Greater Des Moines Partnership first announced the accelerator last year, naming four initial investors. On Monday, the Partnership said the program will be called the "Iowa AgriTech Accelerator" and named three new investors. The new investors include Grinnell Mutual, Kent Corp. and Sukup Manufacturing, all Iowa companies. They join investors Deere & Co., Peoples Co., Farmers Mutual Hail Insurance Co. and DuPont Pioneer. Each investor has agreed to put up $100,000 for the first year of the accelerator. Startups entering the program will receive $40,000 in seed funding in exchange for 6 percent equity. Tej Dhawan, an angel investor and local startup mentor, is serving as interim director until the AgriTech Accelerator names a permanent leader. Dhawan held a similar role with the GIA before Brian Hemesath was named as managing director. As interim director, Dhawan said his main job includes hiring the accelerator's executive director, establishing a business structure and initial recruiting for the first cohort. The accelerator will place few filters, such as location and product, on the applicant pool, Dhawan said. "When you’re seeking innovation, innovation can come from every corner of the world so why restrict ourselves," he said. One area the the AgriTech Accelerator won't recruit from is biotech. For its first cohort, the AgriTech Accelerator will work out of the GIA's space in Des Moines' East Village, Dhawan said. A future, permanent home is still to be decided. The accelerator's program will host startups from mid-July through mid-October, ending with an event connected to the annual World Food Prize. The GIA, which the AgriTech Accelerator is based on, also ends with presentations at an industry event. The accelerator has also started lining up a mentor pool. The Iowa Corn Growers Association, Iowa Soybean Association and the Iowa Pork Producers Association have agreed to provide mentors, as has Iowa State University. While the AgriTech Accelerator is loosely based off of the GIA, it will differ in its business structure, Dhawan said. The GIA runs through a for-profit model for both operations and its investment fund. The AgriTech Accelerator will have a nonprofit model for its operations and a for-profit setup for its fund. Dhawan said the nonprofit model is being used so the accelerator can better work with other nonprofit partners, such as trade associations. "These are all organizations that are nonprofits and can be amazing stakeholders without ever having to be investors in the accelerator," he said. "It becomes easier to work with trade associations in their nonprofit role when we are also a nonprofit." When it's up and running, the AgriTech Accelerator would be one of a handful of ag-focused startup development programs in Iowa. Others include the Ag Startup Engine out of Iowa State University and the Rural Ventures Alliance from Iowa MicroLoan. Matthew Patane is the managing editor and co-founder of Clay & Milk. Send him an email at mpatane@clayandmilk.com.

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