Minnesota has several good, small software shops doing interesting work. Also plenty of active contributors (or founders) in prominent open source projects (JRuby guys live here, two Appcelerator employees, jQuery and Dojo committers and more, and this is just people I know personally). It's true, you don't hear of many VC or Angel funded start-ups around these parts. But we do have plenty of start up companies engineered to, you know, MAKE MONEY from day 1.