Venture capital firms provide money to early startup businesses to help them get their bearings and begin prospering. Nebraska Global is different from most venture capital firms because its focus is solely on technology and the building of a sustainable technology environment. “We’re just nerds with money who want to see more of both stay in Nebraska and prosper,” according to Nebraska Global’s website. The firm uses what’s called “patient capital,” or long-term capital, when it makes investments into startup companies.

On the website, Nebraska Global lists Nebraska last as far as venture capital is concerned — right behind the District of Columbia and Puerto Rico. The team at Nebraska Global believes more venture capital is needed, especially for technology-based businesses since the technology market is only going to increase as the years go on.

The website also says Nebraska Global “is forged out of the belief that our community in Nebraska has all of the makings of being a vibrant and influential technology leader in the US, but too few of the impactful or focused efforts necessary to reach that potential.” One of the things that makes Nebraska Global unique is that the employees have years of experience in the technology field, ranging from 15 to 20 years or even more. Like most venture capital firms, the money provided to startups comes from investors.

There are a variety of startup companies throughout Nebraska, but Nebraska Global believes that a focus on technology is necessary and should happen sooner rather than later.

“This state is primed and ready for something big to happen to its economy. The pieces are in place to take Nebraska to an unprecedented level of technological and economic advancement,” according to the website.

Those at Nebraska Global say Nebraska has advantages for economic development in technology that many other states don’t have. Nebraska’s location in the middle of the country and ability to communicate with other areas of the country are some of the strengths listed by Nebraska Global. “Largely unaffected by the recession, Nebraska is also fortunate to boast a steady economy paced by the fourth highest percentage of graduating high school seniors in the nation. With the help of comprehensive information science, business, technology and engineering programs at respected state universities, many of these graduates are groomed to be the nerds Nebraska Global so desires.”

For more information on Nebraska Global and to find out more about technology venture capital, visit its website.

Invest Nebraska

NebraskaEntrepreneur.com talks to Dan Hoffman, executive director of Invest Nebraska, about their Venture Competitions. Invest Nebraska is a nonprofit corporation that advises and invests in entrepreneurial businesses in Nebraska. In future posts we’ll talk with him about other Invest Nebraska activities and opportunities.

Q: What are the Venture Competitions you organize?

A: Last year we had six successful business plan competitions held across the state – five regional competitions and a statewide competition. We reviewed over 100 business plans from across the state. Most of the judges for the regional contests come from that area.

Winners get an equity investment award, typically around $20,000 to $30,000, and the contacts and expertise of our board members and me to help them grow the business.

I think we are accelerating entrepreneurship in the state, not only because we are creating successes, but also because the competitions force entrepreneurs to take that next step and develop their business plans. Competition brings out the best in people and their ideas.

Q: Who should enter the Venture Competitions?

A: Both startups and existing businesses can enter. They should be located or willing to locate in the area of the contest – the specific region for the regional contests or anywhere in the state of Nebraska for the statewide contest.

Business ideas vary – the regional competitions look different in different parts of the state. If we had a competition just in the city of Lincoln, we might get more technology-driven businesses due to the concentration of students and the universities and colleges in the area. In the Western part of the state we might get more lifestyle businesses like Cabela’s. In either case we are looking for opportunities to bring new dollars into the local area. We say it’s worth it for everybody to apply. Completing the business plan is another step forward to meeting your goal of being an entrepreneur.

The judges look not only at the business plan but also whether the entrepreneur can carry the plan forward. Does this person have the passion for it? You can tell those people who have the passion. While some of the winning plans are well-written, others are not as well-written but the entrepreneurs do have the passion.

One item we look at is competition. Is this idea something unique compared to other competitors? Does it have some competitive advantage?

One interesting result from last year was that all five regional winners happened to be women.

2009 winners: Ashley Hagan & Jeffrey & Stephanie Dusatko - Photo Credit InvestNebraska.com

Q: What makes the Invest Nebraska competitions different from other business plan competitions?

A: The prize isn’t just cash – it’s an actual investment. Invest Nebraska becomes a shareholder in the venture. Members of our board of directors help advise the business and become a source for contacts and opening doors. The business and Invest Nebraska negotiate details of the percentage of equity to be owned by Invest Nebraska after the contest.

The Invest Nebraska competitions are based on the success of Hormel Family Foundation’s Hormel Business Plan Competition, which started in 2007.

Q: What business plan competitions will Invest Nebraska have in 2010?

A: In 2010 we will have the same competitions as last year. The planned months are tentative: April for the Western Nebraska Venture Competition in Scottsbluff; May for the Northeast Nebraska Venture Competition in Norfolk; June for the Hormel Family Foundation Business Plan Competition in McCook; September for the York Venture Competition in York; October for the Southeast Nebraska Venture Competition in Peru; and November for the statewide East 2 West Nebraska Venture Competition in Omaha. There are more details on our Website, www.InvestNebraska.com, or you can email me at dan@investnebraska.com.

We think if entrepreneurs start seeing the same competitions come up every year they are more apt to put the effort into completing their business plans. Part of this is an ongoing trial: Is the regional structure a good approach or should we concentrate on cities? In a few years we hope to see.