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Startup Port Newsletter - Issue #7


Startup Port Newsletter

March 21 · Issue #7 · View online

Create + Collaborate + Launch

There are plenty of information and assumptions out there in the world wide web  (mostly for free) and some, if not many, of it masquerading as facts. But true insights are rare!

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The Cost Of Debt Jets Higher!
(Today, Wednesday, the Feds will tweak the rate hike again…) 
While the Fed plays a role in setting the benchmark for short-term interest rates, its policies also determine inflation expectations over the long-term. After keeping rates low to help the economy recover, the Fed are on a plan to slowly (hopefully) start raising rates, and today we are due for a new rate hike for sure.
What’s Going On Here?
An influential measure of US dollar borrowing costs has spiked sharply in recent weeks, causing concern among some investors – and potentially hiking interest payments for a huge number of companies (and individuals) around the world.
What Does This Mean?
Weirdly, a certain key short-term interest rate, Libor, has shot much higher than the US Federal Reserve’s target. That usually only happens when the financial system undergoes major stress, like during the 2008 financial crisis – which doesn’t seem to be the case today.
Why Should I Care?
For markets: Borrowing costs have gone up – which tends to hurt profits and, ultimately, the economy.
For you personally: Budgeting for higher interest rates is probably a good idea.
For Businesses:
It’s important to understand that higher rates also can have an impact on small businesses in three ways:
1. Business planning (better planning for revenue vs ROI)
2. Cash flow (better control and increase sales returns)
3. Customer spending and saving (consumers will tighten the purses for sure)
How About For startups?
Well, the same above three ways that impact businesses will also have a direct effect on startups overall. It’s going to be even harder to raise money as the interest rate hikes are going to impact the way angel and private investors look at the ROI of investing in startups. 
Here is the full article. (2 min. read)
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Ranking US metro areas by VC invested and returns
US Investment Rankings
US Investment Rankings
Our friends at PitchBook put together a great interactive document ranking the US MTAs by investment ad returns. As always… San Francisco and Silicon Valley monopolies  still attract more venture capital than almost any other part of the country, but other metro areas are gaining on them. Boston, Atlanta, New York and yes Chicago are among the regions that have brought in billions over the last several years—and they also all experienced major jumps in VC invested from 2016 to 2017.
Of course we are biased in our views about Chicago. Interestingly, it is still referred to as a “fly-over” destination between the coast. But slowly both startups and investors are discovering that the cost of starting and doing business in the Midwest and Chicago may be lower than the East or the West Coast. There is also plenty of young, hungry talent from the many high caliber Universities and even from the corporate world. Hopefully this discovery will entice more startups and investors to keep a closer eye on the Chicago startup ecosystem.
Here are some great news about Chicago Startup Ecosystem: 
Ranking according to Multiple On Invested Capital (exits) in the same top 10 areas:  Chicago-Naperville-Elgin, Illinois ranks FIRST! with a 8.5X multiple!
US metropolitan areas by VC invested: capital investment during 2017 and the YoY (year over year) change: Chicago-Naperville-Elgin, Illinois area is ranking 8 with: 10.6B overall investment , $2B Invested in 2017: which is a 60% increase YoY! That’s very impressive considering the rest of the country!
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The Do’s and Don’ts of the best practices on your way to start a great business
We are always asked about how to find the best startup business ideas. So considering there is so much advise out there let us guide you with our take on this dilemma. If you want to launch a startup, you have to start with an idea. There is no magic crystal ball that are going to guide you to the best startup ideas and warn you about which ones are the worst.
There is really no “one” template that fits all, and no true and tried “plug-and-play” magic list of startup business ideas that you can cherry pick from in order to create your next venture. This plug-and-play model doesn’t exist. If it did, everyone would actually be killing it all the time. (Like having the magic number for the lottery every time you play!)
So, no magic solutions here, instead we are going to help you figure out how to navigate the road to success with the Do’s and Don’ts of the best practices on your way to start a great business. Think of this as a general guide to finding your perfect fit during your startup journey.
DO: BE THE SOLUTION, SOLVE A PROBLEM.  The one thing that successful startup ideas all have in common is that they solve a (pesky) problem. That problem can obviously be one of many, many things, but the key is that it’s a problem that is common and irritating enough that customers are willing to pay for your solution.
DO: HAVE A MARKET FOR YOUR SOLUTION.  The importance of market-fit is “the” most crucial component of success for a startup. Many fail to realize what is the “true” market demand for their solution (product, services, or else) and who is the “true” customer!
DO: PAY ATTENTION TO TIMING. As we always say there is no “Ctrl-Alt-Del” for your time, so you need to accelerate your startup deployment and traction model and timeframe. You cannot afford to waste many months on validating, finding customer… Plus, a bad timing of an idea is something that’s just too early or more likely too late in the customer adoption cycle! Timing is everything.
We have many other Do’s and Don’ts that are too many to list here. So whether you are a brand new ideation phase or an in-the process of getting it done startup give us a try, send us an email for a totally free assessment and screening to make you jumps start the don’ts of your startup journey. You will get there faster!
Do you want to see some more of the Do’s and Don’t’s? Here is the expended list(3 min. read)
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Now, a pitch for a startup that a truly love!
Attic Brewing Co. Philadelphia
Attic Brewing Co. Philadelphia
Today I am reaching out to our readers about Attic Brewing Co., the first craft brewery in historic Germantown, Philadelphia.
This micro-brewery start-up is changing the game by focusing on taproom sales, which means maximizing profits and tapping into one of the fastest growing markets for craft beer. Having known one of the founder for decades I admire their new passion for creating Attic Brewing Co. This is perfect example of “do what you love and excel in what you do best!”
What makes this startup (and any investment in it) even better is that Laura (The co-founder) not only knows the nitty-gritty stuff of running a business (Which unfortunately many startup founders lack…) but she is also a brew master! So, she really knows her stuff and the business insights! In fact one of their most popular beers, the brilliant Bloodhound Brown Ale, was her creation.
So don’t waste time, click this link to learn more about a brewery that’s making brewing history in the City of Brotherly Love!
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Short takes and newsworthy stuff...
Workshop on Angel Investment Credit
Workshop on Angel Investment Credit
The Illinois Angel Investment Credit Program attracts and encourages investment dollars into early-stage, innovative companies throughout Illinois. Investments provide these companies with much needed access to working capital to further their growth and success in our state. Tax credits are allocated throughout the year and are awarded on a first-come, first-served basis.
Funding for the 2018  “Illinois Angel Investment Credit Program” is limited to $10 million available per calendar year.
The qualified new business venture (QNBV) registration is a very important for both Startups and Investors alike as this state program provides great advantages for both involved parties. 
Illinois startup companies and angel investors are invited to join a Startup Port workshop on the Illinois Angel Investment Credit Program. Attendees will learn about changes to the program and how they can register to be eligible for this program.
BUSINESSES: Businesses must register for each taxable year in which they desire to be a qualified new business venture (QNBV). Businesses seeking eligibility with the program must satisfy some basic requirements. In our Workshop we will show you the details on how to make sure to qualify.
INVESTORS: Offers tax credits to qualifying claimants in an amount equal to 25% of the claimant’s investment made directly in a qualified new business venture. *If an investor places $100,000 into an eligible business, they would receive a $25,000 tax credit. While the tax credit may not exceed the taxpayer’s Illinois income tax liability for the taxable year, the credit may be carried forward for up to 5 years following the excess credit year. Potential Angel investors must adhere to some basic requirements. Our Workshop will go into the taxation details to qualify.
But this opportunity is not forever. Tax credits are allocated throughout the year and are awarded on a first-come, first-served basis. So sign-up soon. 
Where? 332 S Michigan Avenue, Suite 1100, Chicago, IL 60604
When? Thursday, April 5th 2018 from 5 pm to 7 pm
To sign up: Sign up from this link. (Eventbrite sign-up page coming next week.)
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About Startup Port: We partner with outstanding entrepreneurs and founders to help them build successful companies. Beyond just plain dollars, Startup Port brings “intellectual capital” in the form of matter experts who provide guidance, mentoring, operational advisory and coaching to entrepreneurs, by serving on their boards, providing much needed contacts/networking relationships, assisting with strategic growth planning, key hiring decisions, and preparing them for fundraising
                              - Create + Collaborate + Launch -
If you like this, please share with a friend, a colleague or better yet a young entrepreneur. Thank you, and make sure to manage your TIME properly, we do not have the luxury to restart it with a few keystrokes!
Copyright 2008-2018 | All rights reserved. Startup Port is a Registered Mark. Protected by Copyscape. Do not copy content without permission. For reprints or using the contents contact us. 
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332 S Michigan Ave., Suite 1100, Chicago, IL 60604