On September 10, the
Minnesota Cup announced its best “breakthrough idea” of 2014: 75F, a Mankato-based technology company that makes efficient, cost-effective HVAC sensors. The company, which emerged as the winner of MN Cup’s Energy/Clean Tech/Water category division before emerging as the grand prize winner, took home a total of $105,000 in prize money and funding commitments.
But it wasn’t the only company that won big in this year’s MN Cup. Trovita Health Science, a startup based in Minneapolis' North Loop that makes a meal replacement drink called ENU, took home a $30,000 prize as the winner of the Food/Ag/Beverage category.
YOXO, a St. Paul toymaker that uses simple cardboard connectors in innovative ways, also took earned $30,000 for topping the General/Miscellaneous category. Four other
category winners won between $20,000 and $30,000 in prize money, and earned immeasurable visibility for their ideas.
All told, more than 1,300 Minnesota entrepreneurs and startups participated in this year’s MN Cup—a record turnout. At least 50 percent of all entrants came from the Twin Cities. In a press release, MN Cup co-founder Scott Litman described the field as “the most competitive yet” in the competition’s decade-long history.
Aside from 75F and the rest of MN Cup’s category winners, the September 10 event highlighted the achievements of local entrepreneurs and thought leaders who support the Twin Cities’ growing startup scene. After raising more than $10,000 via Kickstarter,
Twin Cities Mobile Market secured a $1,000 cash prize for its elevator pitch at this year’s Minnesota Cup. TCMM is a “grocery store on wheels” that brings fresh, affordable produce and other nutritious foods to Minneapolis-St. Paul neighborhoods that lack easy access to full-service grocery stores.
MN Cup also recognized Carlson School of Business grad Steve Eilertson as its “2014 Entrepreneur of the Year” for his role as president of locally based Grain Millers, Inc. And thanks to a partnership with the Holmes Center for Entrepreneurship, women were much more visible at this year’s event. Published figures indicate that more than one-third of all entries came from women-led teams. Nearly half of all entries had at least one female participant.
For entrepreneurs who missed the May filing deadline for MN Cup 2014, next year brings a new opportunity. In a September 12 interview on Minnesota Public Radio, Litman had some sage advice for those who would participate. “It might seem un-Minnesotan,” he said, “but successful entrepreneurs” have to be unabashed about self-promotion and arguing for their vision.
He sees two big reasons why enthusiastic entrepreneurs fail. First, they don’t ask for enough money. It’s critical to pin down the cost of developing, marketing and scaling an idea, and many startup owners underestimate the costs they’ll incur before revenues start coming in. By holding out the prospect of five-figure prizes for winning entrants, and by connecting all entrants with mentors and investors who can inject additional capital into worthy startups, MN Cup helps bridge this financing gap.
Just as important, entrepreneurs must surround themselves with the right people, who may be more important than the idea itself. “A great idea in the hands of a mediocre team may not work,” said Litman. He argues that MN Cup is designed to help entrepreneurs self-select: Those who thrive on high-stakes pitches and meticulous business plan development leave the process much stronger, while those who flounder realize that they may need help turning their vision into a reality.
“It’s like American Idol,” said Litman. “Lots of people can sing well,” but not everyone’s voice can fill Xcel Energy Center.