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• k <br /> ..,.ii,,,,,,,,,,,„.......... <br /> ,,,zo <br /> TRENDLINES <br /> os <br /> 4,e,..3 <br /> .„,.. <br /> i_ <br /> Small-town capital <br /> breeds success <br /> Tim Mullen knew he Though small-town Min- get to$5 million, they're not regulations have also hurt <br /> could make a better nesota offers such business ad- interested,"he says. small businesses like his. <br /> hybrid circuit board vantages as low labor costs and Mullen says new banking Given this financing envi- <br /> for hearing aids, but he low manufacturing-space ronment,more and more cities <br /> n ee.° o CARVER '`S n1p and economic-development <br /> couldn't find a venture capital- rental costs, the main reason No,wood Shakopee P <br /> ist who believed him. Mullen wound up in Blue J"'°'Bette Pane °Jordan R` authorities are taking equity <br /> So he searched for other po- Earth was the capital the city s t['' °Arlington <br /> SCOTT New Prague positions in new companies. <br /> tential investors and found offered. °Gaylord o Mullen and four other exec- <br /> people of Blue Earth,Minn., Many start-up businesses ote sucnr°1 ontgomery utives of Hybrid Microcircuits <br /> willing to invest$70,000 in his are forced to outstate Minneso- 3 t t t T l;Centero RICE used to work at HEI,a Victo- <br /> • idea. to because that's where the o, Ulm (St Peter. lE eLEUR F i <br /> ra, Minn.-based firm that <br /> .o. <br /> The Blue Earth Economic money is,Mullen says. °watervitte made small hybrid circuits for <br /> Development Authority took Venture capitalists aren't in- Mankato—.)Mankato other manufacturers. <br /> an equity position in Mullen's terested in a business such as <br /> o Janesville° ,�jWaseca , Mullen left to start his own <br /> fledgling company, issuing Hybrid Microcircuits because ieha BLUE EARTH WAS E C A s T F company because he thought <br /> him a $20,000 low-interest it plans slow,gradual growth to Mapleton° Bloo he could better serve cus- <br /> loan <br /> New Richland° Pr tomers with less turnaround <br /> loan and buying $50,000 sales of about $5 million in n o <br /> worth of preferred stock in the five years. �' 'P5O'°I"ke time,smaller products and cus- <br /> ago° wells° <br /> I business. "What[venture capitalists] ! A R I R A U I T F R F E B O R torn manufacturing. <br /> j Mullen is also leasing a new want is$0 to$50 million in a ( IA <br /> mon•BLUE EARTH Albert Lebo. He expects $400,000 in <br /> . <br /> space in Blue Earth at a low year and a half.If you're talk- I Kesler G sales by December 1993 and <br /> rate,he says. ing about five-year growth to .1_ on' _t $1.5 million for 1994. <br /> 10 MINNESOTA VENTURES NOVEMBER/DECEMBER 1993 <br /> • <br />