The phone call seemed like a prank. A startup founder in North Dakota being invited to meet with Microsoft’s president Brad Smith after his TED Talk? But for Thread CEO Josh Riedy, this seemingly improbable meeting would become a pivotal moment in his company’s journey, offering crucial early validation and funding that helped launch North Dakota’s second Series A company.
The Power of Microsoft’s TechSpark Initiative
In a recent episode of Category Visionaries, Josh revealed how Microsoft’s commitment to fostering technology innovation away from coastal hubs created an unexpected opportunity. “Brad Smith, to kick that off, came to Fargo, North Dakota, and provided a TED Talk,” Josh explains. What followed demonstrates how seemingly random encounters can transform a startup’s trajectory.
From Quick Meeting to Deep Dive
What was supposed to be a brief post-TED Talk meeting evolved into something much more substantial. “Brad took almost 90 minutes of his time, went through deeply into the business plan,” Josh recalls. This level of engagement from one of tech’s most prominent leaders provided more than just capital – it offered the validation that Josh needed at a critical moment.
The Courage to Dream Big
For Josh, who had recently quit his day job to focus on Thread, the investment represented something more significant than the $100,000 itself. “That was a shot of courage that I needed,” he shares, particularly given the timing of his full-time transition into entrepreneurship.
What did Brad Smith see in Thread? According to Josh, the guidance was clear: “It is a space worthy of occupying and not to be afraid to dream big, even if that big idea comes from North Dakota of all places.”
Beyond the Coasts: Challenging Silicon Valley Centrism
This investment challenged the conventional wisdom about where successful tech companies can emerge. As Josh reflects on Brad’s advice: “Don’t be afraid to dream big, don’t be afraid to go for it, because great companies come from all places.”
This perspective is particularly relevant given the statistics Josh cites: “Circa 2018, less than 1/2 of 1% of domestic VC came to the Midwest.” For North Dakota specifically, venture capital was “virtually non existent.”
Key Lessons for Founders Outside Tech Hubs
Thread’s success in securing this early investment offers several insights for founders operating outside traditional tech centers:
- Leverage Local Initiatives: Microsoft’s TechSpark program demonstrates how corporate initiatives focused on regional development can provide unexpected opportunities.
- Be Prepared for Opportunity: When Josh met with Brad Smith, he had a comprehensive business plan ready for discussion.
- Think Beyond Initial Capital: While the $100,000 investment was significant, the validation and confidence it provided proved equally valuable.
The Ripple Effect
Brad Smith’s investment did more than just provide capital – it helped establish Thread’s credibility and opened doors for future opportunities. Today, Thread’s cap table includes other notable investors like Kevin O’Leary, demonstrating how early validation from a respected tech leader can catalyze future investment rounds.
Building the Future from North Dakota
For founders outside major tech hubs, Thread’s story offers an important reminder that groundbreaking technology companies can emerge anywhere. As the tech industry increasingly recognizes the potential of startups from all regions, Thread’s journey from a meeting in Fargo to raising significant venture capital demonstrates that location doesn’t have to limit ambition.
As Josh puts it, reflecting on Brad’s guidance: it’s about having “the courage to dream big.” This message resonates particularly strongly for founders building companies away from traditional tech centers, suggesting that the next wave of innovative technology companies might emerge from unexpected places.
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