I wonder how MN compares to Wisconsin, specifically Madison. I feel like the modern tech/startup community here is growing (besides bio science which is the big thing here), but it is really hard to find talented programmers who are willing to work for a startup (despite there being plenty at the university). I don't know what it is exactly, but established companies seem to draw the most talent, despite the jobs being pretty mundane. I think the biggest problem is a lot of people don't believe in the possibilities of starting a company. The biggest thing I've learned from starting a company here is just how much support there is, and people who want to see you succeed. You never realize it until you take the first step and venture out.
As for talent, I've learned to be patient. The right people do come along if you wait. I've posted jobs several times and I get new applicants each time that restore my faith in the local community.
Finding investors is pretty doable here from those around me that have received outside funding (my company is friends and family right now), and there is a noticeable interest from the government, the university, the community, and investors, in growing Madison to become a hub of innovation.
Finally, one big thing I've noticed is how under served the community is with the whole web 2.0 thing (non techies don't have time for another website). People here really value a personal touch. Couple that with less local competition and there is a lot of opportunity here.