What is the Midwest venture thesis?
It's the case that the best risk-adjusted returns in early-stage investing are increasingly found outside the coastal hubs. Midwest companies enter at lower valuations, burn less, and reach profitability sooner, which gives both founders and investors a fundamentally stronger position. The thesis isn't regional boosterism; it's grounded in 15+ years of building and investing across Kentucky, Ohio, and Indiana.Why do you build and invest in Louisville specifically?
Louisville is home to dense clusters of domain expertise in healthcare and logistics, anchored by Humana, Kindred Healthcare, Yum! Brands, and the UPS Worldport. That produces founders with deep founder-market fit who already know the buyers, the procurement process, and the regulatory constraints. Combined with the University of Louisville's talent pipeline and a lower cost structure, it consistently produces capital-efficient companies built by domain experts.How much further does capital go in the Midwest versus the coasts?
A seed round that buys roughly six months of runway in San Francisco can fund 18 months or more in Louisville, because monthly burn runs a fraction of coastal levels. For investors, lower entry valuations mean 3-5x more ownership per dollar at the seed stage. That capital efficiency lets companies build toward profitability rather than toward the next raise.Can you actually exit Midwest companies?
Yes. Strategic acquirers care about your product, customers, and revenue, not your zip code, and remote-first work has made headquarters location largely administrative. Backupify, which I helped build in Louisville, was acquired by Datto. Because Midwest companies build for profitability, a $30-80M acquisition on a sub-$1M entry check can generate 15-40x returns without needing a unicorn outcome.Is the Midwest trying to become the next Silicon Valley?
No, and it shouldn't. The Midwest's strength is doing what it does well: producing capital-efficient companies led by domain experts who build real businesses for real customers with real profits. In an era of unsustainable burn and growth-at-all-costs, that discipline isn't a consolation prize, it's the more durable model.