#3 October 2022: Midwest Metros

Your monthly filter for economic data & insights that matter.

A Note From the Scale Team

This month, as we officially enter Fall and head toward the end of 2022, we are SO excited to have launched Cohort III. Some of our newest founders are still in stealth, but we can't wait to publicly announce the seven amazing companies across diverse sectors that make up our third cohort. Meanwhile, our cohort I and II companies are continuing their strong year!

Scale invests in tech founders as early as the idea stage and accelerates access to talent, networks, and knowledge. We’re excited to bring you monthly updates about Scale companies and the state of tech startups and investing in the Midwest. - We've filtered through thousands of sources, so you don't have to. Enjoy🥂

"Fundraising is not exciting it is just how you are financing the business. Press and media on fundraises are just a distraction and do not benefit the business's longevity. Flying under the radar shuts out distractions and the temptation to feel overconfident."

Brian Whorley, Founder & CEO of Paytient and Scale Advisor

🏉 Meet the Scale team here 

🏆 Scale portfolio → here

🤝 Collaborate with top funds & founders in our newly launched Flyover Tech community (Join here)

We were blown away by the geographic diversity of our cohort III applicants this month!
A sneak peek at our cohort III companies' industries!

💰 Midwest Economics

💰 Midwest Deals

🐄 Midwest Macro Trends

  • Unemployment in Missouri was steady at a 10-yr. low of 2.5% compared to the national rate of 3.7% and 3.3% in the Midwest ✅

  • Missouri’s Purchasing Manager Index stayed steady through August 47.3, well below the national and Midwest indices 🔻

  • Midwest Consumer Price Index was steady at 8.6% compared to the national rate of 8.5% 🔺

Major congrats to St. Louis for being ranked the #1 city for female founders in 2022!

Shout-out to our friends at Halcyon Incubator for building a community of impact-driven founders and companies.

📈 Macro Trend Report

🧠 This Month's Recommendations

📚 What We’re Reading

🎧 What We’re Listening To

  • Our friend M25's GP Mike Asem chats about why he thinks the Midwest is the best place to invest. [31 minutes]

  • Brad Burnham of Union Square Ventures discusses how founders can change their thinking to become better leaders. [35 minutes]

  • The stellar David Lieb talks all things product with 20VC. [57 minutes]

📅 What We’re Doing

🎮 Midwest Tech of the Month

  • Boddle, a gamified, multiplayer and augmented reality platform first brought to Kansas City area math classrooms in 2020 has raised a $3 million seed round to help them solidify elementary school use in all 50 states!

🚀 Scale Portfolio Company Highlight of the Month

Congrats to Design with Frank for receiving an honorable mention in Fast Company's 2022 Innovation by Design Awards | Home category!

🛠️ Resources

  • Have trouble forecasting your dilution? Find our handy Cap Table + Dilution Calculator here 📒 

  • Helpful resources for early stage companies here 🌐

  • Need help with your deck, get to market, product, or cash burn model? Sign up here for a chance to win a 1-hour strategy session with our team ⛑️

  • Finance Tip of the Month: If you are a founder raising consecutive rounds via Post Money SAFE, it is imperative to understand the dilution effect of each. Post Money SAFEs do not dilute each other. The common misconception as that each follow on SAFE dilutes the previous SAFEs. In addition, SAFEs will not be diluted by increases in options pools prior to a priced round.

Why should you angel invest? Because Venture Capital is the sexiest asset class that improves society while producing outsized returns, duh. Also, venture returns have proven to outperform public equities during a recession. -> If you are interested in angel investing, then sign up here 😇

 💼 Scale job openings --> here