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Google's ultrafast Internet draws startups to Kansas City

By MARIA SUDEKUM, Associated Press Modified: January 13, 2013 at 7:35 pm •  Published: January 14, 2013
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“The whole startup thing in Kansas City is like this huge growing beast,” he said. “It's got this crazy momentum.”

The house has been full since mid-December with Payne and two others. One of the rooms also is reserved for fiber tourists who want a place for a day or two where they can download anything faster than they could elsewhere.

“The hope is that these startups will move their operations to Kansas City and this will really bless Kansas City, bring jobs and taxes and we'll build a really cool tech scene,” Barreth said.

A few homes away from the “Home for Hackers” is the headquarters of the Kansas City Startup Village, which was started by local entrepreneur Matthew Marcus and where Mike Farmer, founder of mobile search app Leap2.com, has his offices. Farmer said Google Fiber brought attention to Kansas City's startup culture, “because it sort of ignites the imagination about what you can do with that sort of bandwidth capability.”

“Most every week I meet one or two or three people that are looking to come in from out of town,” he said.

Despite the growth, it remains a challenge for startups to raise money from Kansas City, Farmer said. Silicon Valley venture capital groups in particular want startup entrepreneurs to be nearby in California, he said.

“I've had some really incredible conversations with some big name VCs, and their first statement is that when you're in this early stage you have to be here, right next to us,” he said. “That is a hurdle.”

Andy Kallenbach recently launched FormZapper.com, an online forms management site, and also has offices near the “Home for Hackers.” He said Kansas City has no aspirations to be the next Silicon Valley and may never have a “Facebook or a giant consumer-level company that takes over the world.”

He said it may also be “better for us” that it's more difficult to raise money in Kansas City.

“The hardest thing about a startup is execution, OK? A lot of people can go out and raise money and get money for an idea or for some product or they can come up with some awesome presentation. But it doesn't matter if you can't build something that people will use,” Kallenbach said. “I think here in Kansas City you have to at some point put your money where your mouth is. You have to ‘do.'”


Read the rest of the story on Oklahoman.com
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