Tag Archives: venture capital

Mark Hasebroock

August 26, 2013 by
Photography by Bill Sitzmann

Despite Mark Hasebroock’s success as an entrepreneur—he was a co-founder of prosperous e-commerce businesses Hayneedle and GiftCertificates.com, in addition to having experience as a small business owner and working in investment and commercial banking—he says he still wishes he’d had less time-consuming, back-and-forth discussion and more expedient, hands-on guidance when he was on the launching pad.

“We got strung along so many times by different investors who just took forever to get to a conclusion. Having been on the other side of the desk starting companies of my own, it was frustrating looking first for the capital, and second: ‘Can anybody help me? How can I get from here to here? Where is this resource? If you were in my shoes, what would you do?’ type of stuff,” Hasebroock says. “At some point I thought, ‘There’s just got to be a better way to do it, and I want to someday start a fund of my own—and do it my way, and do it right.’”

In 2011, Hasebroock did just that, kicking off Dundee Venture Capital (DVC) with an objective to be responsive to, decisive with, and supportive of entrepreneurs, he explains. “When we get an inquiry, we should review it and either we get back to you and say it’s a fit, or we say, ‘It’s not a fit and here’s who you should talk to.’ And let’s do that in a 24- to 48-hour period. The standard is two to four weeks.”

With his team of Michael Wetta, Nick Engelbart, and Andrea Sandel, plus two interns (“They’re all rock stars; I’m notoriously bad at giving direction, so they have to be self-starters.”), DVC operates out of offices in the Mastercraft Building on North 13th Street on the edge of downtown. The Dundee in the company’s name, and in the logo based on a pre-1915 annexation postal stamp, reflects the company’s first offices, as well as Hasebroock’s home neighborhood.

“We started in Warren Buffett’s grandfather’s grocery store—that’s where Dundee Bank is today—and I was an investor in Dundee Bank, so it all kind of tied in together with some of the history with where capitalism sort of started in Omaha and the heart of Dundee,” Hasebroock explains.

“…when somebody comes in with ‘here’s my business, here’s what I’m doing, here’s the problem, here’s my solution, and here’s why my team’s going to win’…we usually know within the first five minutes if this is someone we’re going to back.”

He also likes both the Omaha and Nebraska associations with the Dundee name. Hasebroock grew up in Omaha (he was once a Peony Park lifeguard), graduating from Westside High School, and earning his undergraduate degree at University of Nebraska-Lincoln and his MBA from Creighton University. He and his wife, Jane, who met in their youth and married in 1984, chose to raise their four sons and four daughters in their shared hometown. “No twins and, yes, the same spouse,” Hasebroock likes to say, adding that the family calls the older four the “Varsity” team and the younger half, the “JV.” The collective teammates are now ages 11 to 27 and have kept the family involved in numerous school and community-related sports, clubs, and activities for years. And Hasebroock himself plays hockey with a local adult league, the BPHL (Beer-and-Pretzel Hockey League) on Team Gold, stressing their three-time defending champion status.

“I haven’t really strayed too far,” he says. And his ties to the Heartland continue through his investments. With a preference for Midwest-based endeavors, DVC invests anywhere from $50,000 to a half-million dollars in growth companies that focus on e-commerce and web services.

“The next criteria is super-passionate, driven founders, so when somebody comes in with ‘here’s my business, here’s what I’m doing, here’s the problem, here’s my solution, and here’s why my team’s going to win’…we usually know within the first five minutes if this is someone we’re going to back,” Hasebroock says.

DVC is already seeing its investees take off and even soar under the guidance of Hasebroock and his team. Hasebroock says it was through mentor Mike McCarthy (founding partner of McCarthy Capital) that he saw firsthand how the simple principle of “treat people like you want to be treated” breeds success, and he emulates that culture of respect at DVC. Plus, there’s a multigenerational—and even simpler—principle Hasebroock follows: “Like my grandfather used to say, there’s four secrets to success: W. O. R. K.”

“It’s empathetic because we understand. And yet there are demands on the capital. We certainly want it back. We’d like more than we put in.  But we also know that these founders are being pulled in two hundred different directions. And to the degree that we can help keep them on the rails a little bit and not just chase that next great shiny penny idea; that’s what we want to do.”

Hasebroock, who’s also now involved with a new Omaha-based accelerator for technology startups called Straight Shot, sees nothing but growth ahead for DVC.

“I think the next step is another fund that invests in startups. I don’t think the supply is going to slow down,” he says. “We’re continually seeing really creative ideas out of a lot of markets.”

MindMixer

Photography by Bill Sitzmann

Urban planners turned entrepreneurs Nick Bowden and Nathan Preheim never got used to the slim turnouts that town hall meetings drew for civic projects under review. It bothered them that so few people weighed in on decisions affecting so many.

Preheim, 39, and Bowden, 29, also didn’t feel comfortable cast in the roles of experts who knew what was in the best interests of citizens. They felt too many good ideas went unheard in the process.

The way the Omaha natives saw it, a new approach was needed to better engage people in civic discourse and therefore help build stronger communities. “Lucky for us, urban planning is really stodgy,” says Preheim. “Technology has not really infiltrated the inherent processes within the field, so there was a great opportunity for us to integrate technology into public participation. That’s where we kind of came up with the solution to a very common problem—how do you get more people engaged and interested in talking about community betterment?

“Town halls had been and still are the primary vehicle by which cities solicit feedback. They’re hundreds of years old, and they really haven’t changed much at all. We saw an opportunity to enliven the conversation by inverting that model and empowering people to be a part of that change.”

The business partners developed a startup technology company called MindMixer (see related story on page 33) whose online platform offers a virtual front porch for ideas and opinions to be shared, noticed, and acted upon.

Nathan Preheim

Nathan Preheim

“We’ve always felt that people generally care for their community, but maybe it was an issue of convenience, not an issue of apathy, that prevented them from participating,” says co-founder and CEO Bowden. “Our founding premise is that technology can break that barrier of convenience and open up a bigger world of potential inputs.”

Co-founder and COO Preheim says, “There’s probably something I could learn from you; there’s probably something you could learn from me. We’re way smarter together than we are individually. I think some of that same mantra and guiding force influences what we’re trying to do here.”

“Our purpose is to build a stronger community by involving people in things that matter,” says Bowden. If the response from investors, clients, and everyday citizens is any indication, these visionaries have found a powerful engine to connect everyday people with local government bodies, schools, hospitals, and organizations of all kinds.

“We’ve always felt that people generally care for their community, but maybe it was an issue of convenience, not an issue of apathy, that prevented them from participating.” – Nick Bowden

Launched in 2011, MindMixer, which offices at the Mastercraft Building in North Downtown, has more than 400 clients and expects to reach 1,000 by year’s end. As of July, MindMixer had raised $6.2 million in venture capital, much of it from local investors, to develop its tool. The company’s roster of 30 employees is also expected to grow.

By digitizing the town hall, MindMixer facilitates discussions and debates for projects large and small, from rebranding the entire San Francisco public transit system to a crosswalk put in outside Omaha’s TD Ameritrade Park.

Whatever the idea, whether it relates to recreation or education or health care or some other quality of life issue, people now have a 24/7 avenue to have a say in it.

Preheim notes, “We think we’re the first company that’s trying to pull this off—to unify all those different communities and allow you to sort of contribute to each of them from a single place. It’s providing opportunities for people to give back or reinvest or make a contribution. We’re a funnel, we’re a vehicle, we’re kind of giving voice to people who may not have had that before. It’s empowering, it’s uplifting.

“We are part of something, call it a new movement if you will, that’s enabling better transparency and decision-making by stakeholders who are sort of tapping into the collective wisdom of their constituents. We’re kind of in the meaningful change business. That’s exciting stuff.”

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Nick Bowden

Validation that they’re onto something big, Preheim says, also comes in the large “number of citizen-submitted ideas that have actually been carried forward and implemented” nationwide and the sheer participation happening on sponsored MindMixer sites.

“Last year, we engaged over 800,000 participants, and those 800,000 participants submitted over 38,000 ideas,” says Preheim. “Those are empowering statistics, these are encouraging numbers.” He projects two million-plus participants to submit upwards of 100,000 ideas in 2013.

Sometimes, projects respond to urgent human needs. For example, MindMixer-supported sites which assisted citizens organizing to fight back flood waters in Fargo, N.D., as well as those rebuilding neighborhoods in tornado-ravaged Tuscaloosa, Ala.

The startup’s success earned it 2013 Innovator of the Year honors from the Greater Omaha Chamber of Commerce and Technology Company of the Year recognition from the AIM Institute. Forbes magazine named Bowden an “up and comer.”

With the growth and attention come pressures to relocate, but Bowden and Preheim are determined to prove a tech company can make it big in Omaha. They believe there’s enough talented, smart people locally to lead the paradigm shift the company’s helping lead. MindMixer’s big aspiration is restoring the fabric of community by being the front porch of the internet, where people discuss things that matter and get involved in making positive change happen.

Follow the company’s ride at mindmixer.com. Read more of Leo Adam Biga’s work at leoadambiga.wordpress.com