Non-profit entrepreneurship organization AccelerateMSP has just named Pamela York as its new Chief Executive Officer (CEO). York has decided to scrap the group's plans for a seed fund for startups in Twin Cities, according to Minneapolis/St. Paul Business Journals.
York said the seed fund became a source of controversy: "There was a concern that if you put public money into a nonprofit, [the funds] will get spread around like peanut butter, as opposed to being put into the best opportunities."
The organization had initially planned to invest in seven to 10 startups in Twin Cities every year. The seed fund would have been backed by both public and private investors. However, AccelerateMSP has now decided to shift its focus to mentoring those startups after they have secured funding, the report detailed.
During the launching of AccelerateMSP, St. Paul Mayor Chris Coleman said the organization would be an answer to the lack of startup seed-stage funding. But York said that the group first needs to verify if there is indeed a lack in funding or if it is just a perception of a funding shortage, Minneapolis/St. Paul Business Journals reported.
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