Venture capital conference hints of better times ahead

The economy is starting to recover from the punishing two-year recession and there is evidence that investors are starting to pull money out of their mattresses.

U.S. stock markets are up about 50 percent since their March lows. In Minnesota, venture capital investments hit nearly $100 million in the second quarter, up from the first quarter but still well off historic highs.

Who knows, maybe we'll even have a public offering or two before the year is out?

Meanwhile, Dan Carr of the Collaborative reports that nearly 400 attendees have put down up to $595 to attend the 23rd annual Minnesota Venture & Finance Conference at the Minneapolis Convention Center Sept. 30. That's ahead of last year's pace for the annual bazaar that brings together young companies in the medical, technology, energy and other industries with venture capitalists from Minnesota and elsewhere.

Carr reports that about 70 percent of the private capital raised in recent years went to companies that displayed their wares at the fall bazaar and that, in total, more than $3 billion in venture capital has been raised by these firms over the years.

"Innovation is alive and well in Minnesota," said Carr, who's bet his career on bringing together promising companies and prospective owners.

In addition to the young-company presentations, workshops and networking sessions throughout the day, there are a couple of interesting panel discussions featuring veterans of small companies that have gotten bigger in recent years.

At 3:15 p.m., several graybeards will consider "The Federal Factor: The Sweeping Stimulus and Reform Agenda and What it Means for Innovation."

The speakers include Bill Cooper, CEO of TCF Financial; Mark Heesen, president of the National Venture Capital Association; Vance Opperman, CEO of Key Investment; Pete McNerney, a veteran venture capitalist, and Gary Stern, the just-retired and longtime president of the Federal Reserve Bank of Minneapolis.

For more information: www.collaborative.net.

Markman closes fund Bob Markman, founder of Edina's Markman Capital Management, is shutting down his Markman Core Growth mutual fund, a onetime high flier that hit a brick wall last year.

The fund, once a five-star Morningstar performer, had broad latitude as to how and in what it could invest. Markman, following a 2008 in which he joined a lot of other funds in losing a third of Core Growth's value, stayed bearish this year.

Meanwhile, the asset value tumbled from a high of $60 million to about $13 million, and expenses on the shrunken asset base have risen to a very high 4 percent in a business where they average closer to 1.5 percent.

"I did not expect the 50 percent rebound off the lows [of March]," Markman said Monday.

"Given the expense ratio, and we saw no inflows of capital, the board of the fund decided to close the fund, given the current expense level of 3 or 4 percent. I believe the era of the small, stand-alone fund is gone. We were not showing up on a lot of screens."

Markman, who will continue to manage what he says is about $80 million in private-account funds, has drawn attention for his public criticism of the old buy-and-hold approach to investing.

Wind CEO leaves Founder Ken Valley has departed as CEO of Midwest Wind Finance.

Valley founded the firm years ago as a farm-equipment finance operation and moved into small-scale wind projects several years ago.