How the MIT Ecosystem is Supporting Entrepreneurs

0044_8788 copyAnother MIT delta v Demo Day is in the books! Our 2018 cohort was the biggest yet, with 25 teams presenting, and for the first time, we had a program in New York City in addition to our Cambridge team.

With all our preparation for Demo Day and the excitement of the day itself, sometimes it’s tough to step back and look at the big picture – but, it’s important. In this case, the big picture is the MIT ecosystem for entrepreneurs, and how it works to support our startups.

As our Managing Director Bill Aulet said in his introductory presentation, the mission of MIT is that we DO things, and that’s what this is all about. We are driven to bring knowledge to bear on the world’s great challenges. Our entrepreneurship program at delta v is about trying to solve some of these great challenges – and we do it by creating an environment and an ecosystem where these entrepreneurs can thrive and flourish.

An Inspiring Environment for Diverse Ideas

Delta v is the most inspiring environment I can think of for an entrepreneur. There’s an energy here that propels each of our teams forward. For 90 days, the delta v teams eat, sleep, and breathe their companies. They are guided through a process that makes them really think through the realities of starting an actual business. It’s not just chasing a cool idea – the fundamentals and bedrock of the business must be in place, including a solid business plan, working collaboratively with a board of directors, and testing their concepts with customers. The mentors, Entrepreneurs-in-Residence, our board of directors and the customer community are all part of the ecosystem.

This year, I was really impressed by the diverse industries in which the students worked. We had students with business ideas in crypto-currency, social, agriculture, mental health, financial, construction. And despite these wildly different spaces, the students still managed to find common ground and problem solve together. Three big themes stood out this year:

  • Inclusion – such as financial and societal inclusion
  • Human isolation – people are more connected today, but there is a lack of real relationships
  • Machine learning & AI – technologies with strong MIT foundations

A Strong Entrepreneurial Community

At delta v, we realize that a startup is only as strong as its community. So, we really focused on building more support systems for our students. We brought back delta v alums, like our keynote Spyce, a 2015 delta v alum who just closed on a $21 million series A round. We did consistent one-on-one counseling with founders and hosted outside advisors and speakers to provide novel perspectives for our students. In addition, this area provides an unparalleled innovation ecosystem access. The MIT campus and Kendall Square area is the densest innovation cluster in the world, with its concentration of startups, high-tech companies, and venture capital firms. This enriches the lives of our student entrepreneurs and expands the ecosystem where our they can grow and learn.

Personal Development as Leaders

A lot of this summer was about personal development for our entrepreneurs. I never worry about these students when it comes to technology. But it takes intentional entrepreneurship education – through many different teaching methods and technologies – to help create leaders that can rise to the challenge of starting a business. That’s something we hope to continue to grow at delta v in the coming years. Because really, anyone can raise money for their startup. But it takes better leaders and teams to know how to use that money and tech knowledge more effectively to continue generating revenue and try to solve some of the world’s great challenges.

If you want to get the full experience (and have 3+ hours), watch the video of the entire Boston Demo Day 2018 program:

To learn a little about each of the teams and view the startup videos (about 5 minutes each).

Also, see what BostInno and the MIT Sloan Newsroom have to say about Demo Day 2018!

 

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How Imposter Syndrome Affects Our Best and Brightest

psychology-1957264_1920I heard a statistic the other day that 70% of people admit to feeling like an impostor at some point in their lives.* I work with students at MIT – one of the most prestigious universities in the world – and although it attracts the best and the brightest, college students at institutions like this are even more prone to suffering from insecurity.

A former student and I were discussing her experience at MIT and she said she completed her degree in three years – not because she was smarter than the other students, but because she felt someone would find out she didn’t belong there. Wow. And it continued when she went to Harvard Business School and felt the same insecurities. Today, this woman is a successful entrepreneur, but taking risks has never come easy for her.

Imposter Syndrome is a real thing. Although it is not an official clinical diagnosis, Scientific American classifies it as “a pervasive feeling of self-doubt, insecurity, or fraudulence despite often overwhelming evidence to the contrary. It strikes smart, successful individuals. It often rears its head after an especially notable accomplishment, like admission to a prestigious university, public acclaim, winning an award, or earning a promotion.” Interestingly, minorities and women are hit the hardest. Facebook COO Sheryl Sandberg, Oscar-winning actress and Harvard alum Natalie Portman, and Starbucks CEO Howard Shultz all admit that they suffer from Imposter Syndrome and share their stories here.

Fake It Until You Make It

Those who suffer from Imposter Syndrome will probably shudder when they hear the words “fake it until you make it,” but sometimes this can be the best approach. For instance, there is a lot of research that says men will apply for a job when they typically meet only 60% of the qualifications, but women only apply if they meet 100%. This is the type of “fake it until you make it” approach that gives you a chance to level the playing field and prove yourself. The most prominent fake role, in my opinion, is parenting. You may have babysat for children and thought, “I can do this.” However, it is not until you have 100% responsibility for a child that you are aware that you are faking it. Yet we adapt, learn from our mistakes, and become better parents.

Deep Stealth Mode

My boss often talks about his first startup company being in a very “deep stealth mode” – meaning it failed. It failed, but is he a failure? Of course not. Today, Bill Aulet heads up the Martin Trust Center for MIT Entrepreneurship and he’s an accomplished professor, speaker, and author. He learned that each risk he took – and continues to take – makes him stronger. The book Antifragile by Nassim Nicholas Taleb discusses that although fragile things break under stress, there’s an entire class of other things that don’t simply resist stress, but actually grow, strengthen, or otherwise gain from unforeseen and otherwise unwelcome stimuli. There are some benefits from stress, disorder, volatility, and turmoil that may allow us to not only survive but flourish.

If you fail at a job what is the worst that can happen? You may get fired. Yet, the sun does come up the next morning. You figure out what happened, and hopefully, what you’ve learned. Then you can address the problem and try again. The key is the reflection and the learning but also taking the risk to try again. So why do most entrepreneurs fail a few times before they get it right? It may be that they are doing things that have never been done before. In some instances, they may not have the necessary skills. But the question is, can they learn or surround themselves with the right people to move forward?

Advice for Overcoming Imposter Syndrome

Going back to the story of my former MIT student; she looked to her mentors when she was faced with a decision to go out on her own and start a business. I could see that it was a positive step for her and knew she would do well. She struggled to make the decision, but we helped her through the process and assured her of her strengths. Ultimately, the decision was her own, and the leap was significant. She now has a thriving business and influences many people with the work she does every day. So what did we tell her?

  1. Be open to the possibilities.
  2. Find joy in what you do.
  3. Be open to change and learn.
  4. Learn from both failure and success, and let them make you stronger.
  5. Be a disciplined entrepreneur.
  6. Surround yourself with a board of advisors.
  7. Enjoy life!

The Scientific American article suggests two of the ways to overcome Imposter Syndrome are to choose a mentor (the way she chose to work with the Entrepreneurs in Residence at the Trust Center) or become a mentor. Becoming a mentor lets you gain perspective, share what you know, and nurture others.

I have grown through the ranks at large companies, completed entrepreneurial stints at two startups, and now I’m in education, guiding new entrepreneurs. Each move was, in my opinion, a risk with challenges, new people, and new technology. However, if you are lucky, you will have a long life with lots of options. I can tell you first hand it is much more meaningful to want to learn, from mistakes or circumstances, but it’s also important to know that even if I fail … I can start again.

*Statistic attributed to the International Journal of Behavioral Science

Find Your Voice, Own Your Narrative, and Help Your Mentor Help You

In today’s society, there is an awareness that diversity is important not only as a concept, but also for real bottom line improvements. While this is good news, there is still a long way to go. I recently had the privilege of joining a panel that discussed the successes and challenges facing women in terms of equal pay, gender parity/blind bias, and upward mobility.

“Press for Progress” was sponsored by The Boston Club and held at the offices of Ernst & Young. First, my thanks to our moderator, Tara Alex, an Insurance Partner at E&Y, and my fellow panelists: Linda Rossetti, social entrepreneur and board member; Agnes Bundy Scanlan, who is on multiple boards and an advisor at Treliant Risk Advisors; and Jane Steinmetz, the Managing Principal for E&Y’s Boston office.

The overall feedback from this panel is positive – there is more focus on improving gender parity today, and sponsorship is key to that improvement. When you have a sponsor, someone is advocating for you; they have your best interests in mind and can recommend you for important assignments. The other key takeaway is the importance of having multiple women and minorities in the candidate pool for new hires.

Gender Parity and Sponsorship

The panel provided actionable advice both for women trying to get ahead and for their mentors. It was clear from the panel’s experience, as well as the audience’s, that each individual’s journey is personal and gender parity mandates don’t work. Because each experience is different, the power is shifted to the employee to own their experience and make the most of it. Employees need to leave “breadcrumbs” along the way so that when opportunities arise, the managers making the decision know what you have accomplished. Whether it is seeking a board seat or a new career path, if no one knows what you want (and you have not networked to get the message out) then it will be difficult for the hiring folks to find you.

An interesting Harvard Business Review article by Stefanie K. Johnson, David R. Hekman, and Elsa T. Chan delves into the statistics around the number of diverse candidates presented and its impact on selection. Titled “If There’s Only One Woman in Your Candidate Pool, There’s Statistically No Chance She’ll Be Hired,” the article’s premise is that people are invested in maintaining the status quo. That means if two men and one woman are presented as equally qualified, employers tend to hire a male. The panel discussed making the candidate pool richer with more women and minority candidates, and how this could shift the odds.

The women on my panel have all played a sponsor role in their organizations. They talked about looking at a slate of candidates and finding opportunities to position them, so they are ready for the next opportunity. But this can only be done if the sponsor is aware of what you want and desire as a potential job candidate. This requires you as an employee to own your narrative, find your voice, identify what is of value to you, and link it to the organizational purpose.

Taking Risks

It is also clear that women often wait until they are fully qualified for a job before they apply for it, whereas men are more likely to take a risk and sell the vision of what they can/will do. IBM CEO Ginni Rometty states, “I learned to always take on things I’d never done before. Growth and comfort do not co-exist.”

With each risk you take, you build confidence. The first risk is the toughest, and if you’re successful, each subsequent risk is easier. Changing jobs is scary, but this lets others perceive you in a different light and provides momentum to your career. Even if you fail, you will realize what the issue was – wrong organizational fit, skills mismatch, more travel than you understood it to be, etc. – but by taking the risk you’ll be better prepared for when you make the next decision.

Upward Mobility

Pay parity and advancement were topics of particular interest to women who take an extended parenting leave and then return to the workforce. The panel’s advice was that you need to align yourself to market value, not your former salary. Do the work, find the data, and present your case. Today there is more transparency in salaries with sites like Glassdoor, so use this to your advantage. Remember, it is much costlier for your employer to lose you as an employee than to provide you a market-value salary. Also, step back and look at patterns. If you have seen other people’s careers go off track, this is where you must convey your own narrative to decision makers and voice your expectations about what you need to make it work.

Another point women should consider as they negotiate salary and benefits, is that silence is OK. In fact, it is often a powerful negotiation tool, so use it to your advantage. One final point is that you don’t have to do a job the way your predecessor did. Make it your own. If your family obligations don’t allow you to be out every night of the week, then figure out what does work for you and own it.

Further Diversity Research

I looked further at the research and the Harvard Business Review has a series of articles on the latest studies in diversity. One article by Evan Apfelbaum, titled “Why Your Diversity Program may be Helping Women but not Minorities (or Vice Versa),” looks at the problem of lumping women and minorities into one bucket. “The fact is that 40% of women make up all employees in a professional setting, whereas black women and men by contrast rarely comprise more than 5% of employees in these same settings.” These statistical differences affect how concerned people are with “sticking out” as representatives of their group. While the “value in difference” approach may energize groups, like white women, the very same message may, ironically, undermine groups who are represented in smaller numbers, like black women and men.

In the end, business is conducted by people and the way to enhance performance and decrease turnover is to provide all groups the same opportunity to succeed.

 

The delta v Culture: Six Entrepreneurial Essentials at MIT

delta-v-2017-On June 12, we’ll open the doors to this summer’s delta v cohort, beginning an intensive 3-month entrepreneurial “boot camp” for MIT student entrepreneurs. This post looks at the culture of delta v and how this environment helps to grow entrepreneurs.

The saying “culture eats strategy for breakfast” is attributed to management guru Peter Drucker and was made famous by Mark Fields, president at Ford Motor Company. It speaks to how vital culture is in an organizational setting. At MIT, Professor Bill Aulet has written an article that explains why, as an organization, we believe culture is essential for entrepreneurs.

For delta v, MIT’s capstone student venture accelerator, we create a culture of entrepreneurship that is all about risk-taking and the freedom to make mistakes. Although delta v operates out of a cool space with a startup feel, it’s about more than the free coffee and ramen noodles or the walls you can write on. The vibe of delta v is different because of the people inside it and the meaningful work they do. If you’re one of the fortunate student teams accepted into the summer-long “entrepreneurship boot camp,” you’ll be surrounded by smart people all working on new companies with big goals. During the summer, the teams will be working in small cohorts in similar fields and will also participate in being part of a greater cohort, where a true sense of teamwork and collaboration is established.

The staff at delta v know they are assisting students who are making a positive impact in the world. In this experimental culture, failure is expected because students are encouraged to take risks and stretch to their full potential. This is a safe zone to try new ideas and the disciplined entrepreneurship framework provides a basis and common language for the staff to work with students. The framework isn’t a hard and fast set of rules, but it’s more like a common operating system that guides all of the teams.

As part of the culture of delta v, we also bring in the outside community to meet and assess the student teams from an educational perspective – not to look for deal flow but to participate in the students’ learning experience. A key milestone for MIT delta v teams is meeting with their board of directors and gaining valuable input from these advisors. This year we are also starting a delta v cohort in New York City to expose students to a network that is relevant for their company, for example, fintech, real estate, fashion, media, the arts – but, again, with a common operating system. As students gain experiences throughout the summer, they also build trust and respect within the greater Boston and New York communities that will be important as they launch their companies.

Six elements of the delta v culture are shaped by our principles at the Martin Trust Center for MIT Entrepreneurship:

  • MIT Standard of Excellence and Rigor – The delta v teams receive not only the highest quality education, but also the highest quality advising, and practical experiences as well.
  • Collaboration – By partnering with various departments and centers within MIT and the greater community these startups will be prepared to collaborate for the success of their businesses.
  • Diversity – Encouraging a wide variety of perspectives, people, and ways of doing things mean that new ideas and concepts are examined from many angles and the diverse contributions make each company stronger.
  • Experimentation – delta v is the place to “fail forward” and try everything in a supportive environment.
  • Honest Broker – Since MIT does not take a financial stake in the delta v startups, our focus is solely on nurturing and assisting the education of the entrepreneur.
  • Mens et Manus – MIT’s motto, “mind and hand,” fuses academic and practitioner perspectives for a well-rounded entrepreneur.

The way the Martin Trust Center shapes the culture within delta v will be reflected by each of the entrepreneurs and their ventures. Good or bad, all our past experiences come into play as we create something new. Sometimes we choose aspects of a culture we want to emulate. Other times, we actively realize that a certain way of doing things is something we want to avoid. Many of the delta v teams will go on to become successful entrepreneurs that help to solve some of the world’s toughest problems. (Read about some of them in the news here.)

We hope that each student and team carries forth the culture of delta v.

 

Where are the Hungry Dogs? A Look at Entrepreneurs in the Nordics.

When you think of an entrepreneur, you probably conjure a picture in your head: a tenacious achiever, a passionate risk-taker – essentially one of the “hungry dogs.” But culturally, this is not a universal characterization.

I was recently invited to Norway to teach an “Innovation Crash Course” workshop to postdocs and PhDs at the Technoport 2018 Deep Tech conference, technoportwhich focused on deep tech and what governments, universities, entrepreneurs, and corporations are doing to speed research from R&D labs to make a real impact on society. I was fortunate enough to spend time with entrepreneurs, potential entrepreneurs, and those supporting entrepreneurship in the Nordics, and the experience taught me quite a lot – including not to filter my view of entrepreneurship with a US-centric lens.

This article in Entrepreneur outlines “7 Traits of Successful Entrepreneurs,” which include tenacity, passion, tolerance of ambiguity, vision, self-belief, flexibility, and rule-breaking. But, it makes me think –are we looking only at entrepreneurship from an American perspective? This post shares my experiences in Norway and my thoughts on how the region’s culture and social policies influence its entrepreneurs.

The Entrepreneurial Scene in the Nordics

Although Americans are known for our entrepreneurial spirit and the “American dream,” Nordic countries are also embracing entrepreneurship. Interestingly, according to The World Bank Economy Rankings, Sweden is ranked #13, Norway #19, and Denmark #34 for ease of starting a business, as compared to the U.S. at #49. (New Zealand is in the #1 slot.)

Oslo, Norway is seen as one of the world’s best startup hubs even though it’s one of the most expensive cities in the world. Entrepreneurs can expect a refreshingly balanced approach to work/life and a great environment to base tech or communication startups. Norway’s startup scene is also starting to blossom in terms of investment, and these articles in Shifter and Medium show how other Nordic countries, specifically Finland and Sweden, are doing particularly well in terms of investments, with Denmark also catching up.

The Problem for Entrepreneurship in Norway

Although there is a welcoming environment, is the drive to be an entrepreneur similar to the U.S.?  An in-depth article in Inc. magazine reports, “The problem for entrepreneurship in Norway is it’s so lucrative to be an employee,” says Lars Kolvereid, Professor at the University of Nordland, who was the lead researcher for the Global Entrepreneurship Monitor in Norway.

In the U.S., about one-quarter of startups are founded by so-called necessity entrepreneurs – people who start companies because they feel they have no good alternative. In Norway, there is less necessity; the number is only 9 percent, third lowest in the world after Switzerland and Denmark, according to the Global Entrepreneurship Monitor.

The social welfare system is quite different there as well. The article explains there are no private schools in Norway; education is public and free, from nursery school through graduate school. In addition, the unemployment rate is low, and, if you are unemployed, there are generous benefits. Every Norwegian trondheim-2068802_1920worker also receives free health insurance in a system that produces longer life expectancy and lower infant mortality rates than in America. At age 67, workers get a government pension of up to 66 percent of their working income.

Zoltan J. Acs, a professor at George Mason University and former chief economist for the Small Business Administration’s Office of Advocacy, summed it up, “The three things we as Americans worry about – education, retirement, and medical expenses – are things that Norwegians don’t worry about.”

Essentially, the wealth and comfort prevalent in Norway and Denmark mean there is less of a “hungry dog phenomenon,” something that was even remarked upon by the people I met with at the Technoport conference. This makes it a challenge to recruit young people to work for startups since they are well compensated in the public sector, don’t have debt, and generally lack incentives to take the risk. In addition, while I was in Denmark I heard that many startups are bought by American companies before they have a chance to make an impact on the Danish economy, so the benefits are not seen by the founding country.

Of course, Norway’s generous social benefits are financed largely from higher taxes, another consideration for entrepreneurs. However, as the Inc. article explains, Norwegian entrepreneurs tend to see taxes as an exchange of cash for services, rather than a burden. All of these factors certainly set a different stage for Nordic entrepreneurs as they consider starting their own businesses.

A Need for Entrepreneurship and Innovation in the Public Sector

I met with MIT alumni in both countries and came away with a better understanding of a need for entrepreneurship in the public sector. There is a strong corporate culture of innovation programs that are challenging the current thinking, but these share some of the same challenges that U.S. corporations face. Examples include budget cycles that are often incompatible with the reaction time needed to respond to new market changes and conditions, attention that gets divided between current versus future business challenges, functional silos, and challenging organizational dynamics.

A Successful Transformation from an Oil-Rich Economy

The economic impact of the oil industry is another factor when considering entrepreneurship in Norway. The focus of the Technoport conference was on energy, education, and ecosystems. And, although Norway’s oil industry has always been a key economic contributor for the country, it is a finite resource with all constituents looking ahead to what industries can, will, or should do to replace (or supplement) oil in the future.

In an article in TechCrunch, Anita Krohn Traaseth, the CEO of Innovation Norway, says that it’s time for the country to look beyond oil. “Norway needs to develop and build several growth sectors to contribute to a more diversified and sustainable national economy.”

“The fundamentals in Norway to make a successful transformation are solid,” she explains. “We still have a low unemployment rate, we still have a huge capital reserve toentrepreneur-593358_1920 make necessary investments for the future, we have a strong growth of entrepreneurial focus and companies. This is all about how we prioritize, reposition investments, build competence, and have the guts to make important, and maybe radical, political decisions today to secure tomorrow.”

Conclusion

Just as entrepreneurship in the U.S. is complex and driven by many factors, so is the entrepreneurial environment in the Nordics. On the plus side for Nordic entrepreneurs, because higher education is free in Norway, students don’t graduate with the crippling debt that is an issue for so many young professionals in the U.S. This provides an opportunity to focus on jobs they love, versus jobs that can pay back the loans.

A Forbes article titled “Four Things Entrepreneurs Can Learn from Denmark’s Work Culture” cites teamwork, a flat, non-hierarchical structure, autonomy, and a compassionate management style as reasons for successful entrepreneurship – quite a different list than the seven traits listed by Entrepreneur at the start of this post.

At Technoport I was able to see that Norway is working to create a vibrant entrepreneurial ecosystem to provide solutions to some of the world’s most difficult problems. I believe the mix of people I met in Norway and Denmark – young, older, entrepreneurs, corporates, and investors – are all willing to learn from each other and are looking for their role in supporting the entrepreneurial ecosystem.

 

The Time is Now for Women to Step Up, Speak Out, and Take Control

On this year’s International Women’s Day, I’d like to reflect on how we can encourage women to speak up, be heard, and support each other. The #metoo movement has brought to light countless examples of abuse, mistreatment, and harassment, but if there is one positive glimmer out of all that is being shared, it’s a sense of solidarity and empowerment.

I believe that entrepreneurship can be a path to channeling that energy and creating positive outcomes. The time is now to step up and speak out. The time is now to take control of your own destiny. Stop saying “I’m sorry” and start saying “I’m ready to make a difference.”

I believe that sometimes making a difference is being your own boss. In my role as Director of MIT’s educational accelerator program, delta v, I work every day with both female and male student entrepreneurs. Some of these students have ideas that may change the world someday, but even more important is their sense of pride and accomplishment when they can make decisions that shape their own direction and have a positive impact on other people.

Maybe being an entrepreneur is not for everyone. But, if and when you are in a position to define your own path, you have turned the tables and now have control. You can help not only yourself but others.

Female Entrepreneurs make a Difference

This infographic from Entrepreneur on female entrepreneurship shows that women are founding companies at historic rates with more than 9 million women-owned businesses in the U.S. today. These businesses will provide over 5 million jobs this year. Interestingly, businesses with a woman on the executive team are also more likely to have significantly higher valuations (64% higher) at Series A. These statistics demonstrate that women are creating new models of leadership, and that is hopefully changing the balance of power.

How to Get Started

Now is the time to be an entrepreneur, yet the hardest thing about entrepreneurship is getting started. Newton’s first law states an object at rest stays at rest unless acted upon by an external force – and this is true for entrepreneurship as well. So, you need to give yourself a push. For inspiration, here are some stories of female entrepreneurs gaining ground at MIT.

Find the focus that is right for you. Entrepreneurship for small and medium enterprises (i.e. opening your own business in an established industry, such as a florist, hair salon, or consultant) is different from innovation-driven entrepreneurship (i.e. the next “big idea”, inventing something new) but they both let you be your own boss.

What are you curious about? What do you dream of doing? How would you get started? Now is the best time. There are many educational resources (online, classes, workshops etc.), and there are a lot of folks who are willing to be mentors. Plus, check out co-working spaces that are great for startups. In the Boston area, we have the CIC in CambridgeVenture CaféWeWork, etc. that also have speakers and educational resources in all areas of building a business.

Resources for Entrepreneurs

On any given day in Boston, there are events that budding entrepreneurs can attend – many are free, or some charge a small fee. Find the one that fits you. The City of Boston just held a series of events for women, Linda Henry runs HUBweek, there are Mass Challenge programs around the world. These all help expose those interested in entrepreneurship to various options. Here are a number of resources and organizations in the Boston and Cambridge area. Search online to find others in your area. Starting a Business (City of Boston)

The activism among several organizations has opened a lot of eyes, and hopefully recognition. Where women were once dismissed, that there are signs that voices should be heard – from women on boards to women funding enterprises. There is positive momentum, and you can make a difference. The time is now. Give yourself that push!

Originally published here in BostInno.

Entrepreneurship: Making the Middle Matter

minnesota-1086095_1920Call it the problem of the middle—the middle states and the middle class—two groups that have struggled with problems that, while they are inexorably linked, are different all the same.

Historically, most of the venture capital in America has been active on the coasts, leaving a vast portion of the country without seed money for innovative new startups. At the same time, the Midwest has suffered from a loss of manufacturing jobs and, as a result, has in some ways failed to flourish in the same ways as other parts of the country. And, of course, there is no shortage of news articles outlining the many struggles facing the middle class, in general, in America.

“We live in a fractured society,” argues MIT economist Peter Temin in an MIT News article on America’s two-track economy. “The middle class is vanishing.”

According to Temin, America now features two sectors: an FTE sector, where people who work in finance, technology, and electronics tend to thrive, and a low-wage sector, where workers often struggle. The middle class, traditionally an area of national strength, is starting to disappear. Moreover, the FTE sector overwhelmingly focused and fixated on both coasts, has for a long time neglected investment opportunities in the Midwest.

Venture capital—specifically venture capital aimed at the oft-ignored middle states—could be part of the solution. The central part of our country is often ignored as an ideas hub. Most accelerators, venture capitalists, and startup programs are focused on a few key cities on the east and west coasts. The Kauffman Foundation, known for its emphasis on education and entrepreneurship, recently published an article focusing on both the middle class and the middle states, asking: “Is the Middle the New Edge?”

It states: “The middle ground is too often dismissed as unremarkable when it is truly necessary. The middle should be appreciated as an admirable place to be – where people work together to solve big problems and move our nation forward.”

Interestingly, research from the Kauffman Foundation shows that while startup activity is half of what it was a generation ago, entrepreneurs are making a comeback – and the mid-country states are particularly active. Of the 10 metro areas with the highest growth in entrepreneurial activity last year, six are in the middle of the country. This short video gives a great overview of how the middle might be able to give our nation a crucial advantage.

One way to energize innovation and entrepreneurship in Middle America is with infusions of capital and training. Steve Case, the billionaire co-founder of AOL, has started a seed fund called Revolution that plans to raise up to $100 million to fund promising startups in the Midwest. J.D. Vance, author of Hillbilly Elegy, has teamed with Case to find the right companies to champion. They are also starting a “Rise of the Rest” tour to educate entrepreneurs and fund pitch contests in emerging startup communities in the middle of our country.

How can innovation and technology help in the middle?

As new technology is disproportionately displacing middle-class jobs, how can innovation help narrow the income inequality gap?

Boston Globe article titled “MIT Awards Focus on Tech That Helps Low, Middle-income Workers” focuses on MIT’s first Inclusive Innovation Competition. Erik Brynjolfsson, who helped launch the competition, points out, “Technology is creating enormous wealth and curing diseases. But a lot of people aren’t sharing in that bounty. It’s been easier to think, ‘how do I take an existing task and automate it?’ We are trying to change the conversation.”

The competition awarded prizes of $125,000 to four companies that target the “sweet spot” between technology and people to drive more innovation to underserved communities. Twenty other finalists received $25,000 each. One of the goals of the competition is to start getting more nonprofits and private investors thinking about how to ensure the innovation economy works for all.

It is tempting to get wrapped up in the excitement around the next unicorn company with a $1 billion-plus valuation, but we also need to take a step back to see not only the shooting stars, but also the entire night’s sky. Those in the middle can offer a lot – backed by hope, pride, and rigor. As educators and supporters of entrepreneurship, let’s make sure we support their opportunities.

This article was originally published on Xconomy.