Two West Des Moines Companies on MSNBC’s List of Five Silicon Prairie Start-Ups to Watch

Three Iowa companies – two of them in West Des Moines – are among five companies to watch on the Silicon Prairie, “ the hottest area in the country for tech startups that you never heard of,” the cable news network MSNBC said.

Topping the list is the e-commerce marketplace Goodsmiths founded by a pair of Waukee entrepreneurs that goes head-to-head with Etsy. It not only gives artisans and craftspeople the tools they need to sell online, but also offers an online community that's there when you need them. The social networking engine allows users to interact with one another.

James Eliason, who co-founded the company with Levi Rosol  earlier this year after his wife and other users expressed frustration with Etsy.

Eliason said the Silicon Prairie location is an advantage.

“The Silicon Prairie is one of the largest untapped talent and resource pools in the United States,” he told MSNBC. “There are over 20 million residents of the Silicon Prairie who are very loyal and passionate about brands and companies they use.”

Also on the list is Social Money of West Des Moines, which uses award-winning SmartyPig techonology to create FDIC goal-saving products for banks, merchants and other industries. These products provide a social networking strategy to engage customers and create new revenue streams.

Gen Y savers. The product replaces the typical savings accounts and programs of the past withsocial features and a cutting-edge user interface — all for the fraction of the cost of a new program, according to Social Money's web site.

Like Eliason, Social Money co-founder Jon Gaskell told MSNBC that one reason for the success of tech startups in the Midwest is “the people.”

“They are extremely talented and they work extremely hard,” he said.

Also on the list is Banno, a Cedar Falls company that is working with more than 300 financial companies to help them mine banking data to drive growth and customer retention.

“Startups in the Silicon Prairie have a bootstrap mentality, regardless of if they’ve raised money,” Banno CEO Wade Arnold said. “This enables a longer runway and a focused team.”

Investors are starting to take notice of Iowa, long considered a flyover state for venture capitalists and angel investors, and the rest of the Silicon Prairie, according to the MSNBC report.

It cited investments in the region by heavy-hitters like Union Square Ventures, Dundee Venture Capital and Andreessen Horowitz, and said that interest likely will continue to grow.