Minneapolis tech community remains strong during ‘tense and difficult times’

An escalating crackdown by U.S. immigration authorities in Minneapolis has left several people dead, including at least two Americans, and the city’s tech industry is reeling.

Eight Minneapolis-based founders and investors told TechCrunch that they’ve put much of their work on hold and are now spending their days focusing on the community, volunteering at church, and helping with food purchases. This is part of a grassroots effort where people of all races and classes speak out, donate, protest and provide moral support to each other.

“There are a lot of parallels between the current reaction from teachers and the reaction from technology experts,” Scott Burns, an investor in the sector, told TechCrunch. He said people were “very tired.” Burns has started going to church more often to help package food to give to people who are too scared to leave their homes. “It was like what happens after a natural disaster,” he said of the effort.

Burns and other members of the Minneapolis tech industry told TechCrunch that the immigration raids have wreaked havoc on their lives, describing a city that has come together in recent weeks in the face of increased violence by U.S. Immigration and Customs Enforcement.

How can corporate formation remain the focus when ICE agents appear to be everywhere, wearing civilian clothes and carrying military-style weapons?Federal agents have been seen searching public transportation and loitering around workplaces. They are outside the house or in the parking lot. They have been seen circling around the school.

One Black founder, who spoke on condition of anonymity to protect his staff, said he now carries his passport everywhere he goes. Although he is an American citizen, he has seen people of color profiled and arrested by ICE and Border Patrol agents across the city.

“People don’t exaggerate how hard it was. It’s hard to concentrate. Even my team had a hard time just getting through it,” he said.

He recalled regular conference calls with colleagues that suddenly went silent. A co-worker was speechless and said she had seen ICE detain someone in her mother’s neighborhood.

“I had to hang up and call my mom to see if she had a passport,” the founder said.

Efrain Torres, the Latino founder, works from home and tentatively listens to stories of immigrant attacks happening in his neighborhood. “There’s no way their voices can’t be heard,” he told TechCrunch. The car beeps. Protesters are honking their horns. “If you miss it, you’ll see a sign that says, ‘My neighbor was taken by ICE.'”

Authorities have even conducted “national tests” in which people are stopped and asked to prove their immigration status, although the Supreme Court last year said tests could be based on details such as race and whether a person has an “accent.” Torres said such tests are also being conducted on people performing everyday tasks such as shoveling snow from lawns. He said he likes to keep a low profile because he has had several run-ins with ICE himself.

“The dividing line between me being a victim of assault and not being a victim of assault is just a chance encounter,” he said, adding that he knows people who have been tailed by ICE. What others have reported is happening in tandem with the raids.

The Trump administration has escalated immigration raids across the country, but the deployment to the Twin Cities is particularly large, with more than 3,000 federal agents sent to Minnesota as part of the Trump administration’s Operation Metro Surge. Minnesota Sen. Amy Klobcharov said ICE and Border Patrol agents currently outnumber local police by nearly 3 to 1 in Minneapolis.

The state has one of the largest populations of migrants from Somalia, and the regime has previously targeted them. Among them is U.S. Representative Ilhan Omar, who has sparred with President Trump. Minnesota Democratic Governor Tim Walz believes he is being targeted by the president, as does Minneapolis Mayor Jacob Frey, also a Democrat.

The increased immigration enforcement is part of President Trump’s campaign promise to curb illegal immigration, but some argue that he is specifically targeting cities and states that did not vote for him. Since Trump took office last January, more than 2,000 people have been arrested by ICE in Minnesota.

“It’s been tough,” said one black investor, speaking on condition of anonymity. He is also a U.S. citizen and can trace his roots in the United States back a century. Still, he lives on the outskirts of the city and carries his passport just in case.

“Where I go to the gym is in rural Minnesota,” he said. In other words, agents are not just in urban areas. “It’s just been a strange time.”

But everyone does what they can to help others. For example, the investor works with university founders, many of whom are immigrants. He buys them food so they don’t have to risk going to the grocery store themselves. Like many others TechCrunch spoke to, he tries to work from home as much as possible.

“It’s a tense and difficult time on the ground,” Mary Grove, another investor in the space, told TechCrunch.

Investor Reed Robinson said the company also supports community members financially, with some founders with children setting up volunteer systems to watch each other’s children at schools and daycare centers. He said it is common for ICE to detain day care workers, adding that ICE agents frequently violate the law and court orders.

“It felt unnecessary, it felt intrusive, it felt like a violation of my rights,” Robinson said of the immigration process.

Like Robinson, many people find anger behind their anxiety and fear.

Investors and founders said the emotional toll will make construction difficult. For example, Torres said his company currently has a policy of not using rideshare apps. Several of his engineers have H-1B visas (which the Trump administration has also attacked) and have reported being tracked by immigration officials.

“Every time there were three or four armed people in tactical gear,” Torres said, adding that he and his wife had discussed fleeing the state. “They inflict trauma everywhere they go.”

Grassroots efforts grow despite disappointment among corporate leaders

Minneapolis’ tech industry is still very small, with companies raising just over $1 billion in funding over the past few years. This ecosystem is home to some notable companies, including fintech Sezzle (now publicly traded), water purification company Rorra, and medical technology Reema. Robinson said innovation has an amazing history. “It’s not going to stop. We’ll continue to work as we understand this current situation.”

The Twin Cities, Minneapolis and St. Paul, are home to some of America’s largest companies, including Target, Optum, Best Buy, UnitedHealth Group, and General Mills, to name a few. Some founders and investors have criticized the leadership of these large companies, primarily for their vague response to the unrest gripping the city, even as many employees have been detained.

One startup investor said, “We’re not getting enough response.”

Sixty top state officials signed a statement calling for an “immediate de-escalation of tensions” after ICE agents killed ICU nurse Alex Pretti. Large businesses in the state have also rallied to provide millions of dollars in grants through the Minneapolis Foundation for businesses affected by Operation Immigration.

But compared to what’s happening at the grassroots level, many founders and investors say these actions aren’t enough. A recent CNBC poll found that one-third of executives surveyed remained silent because they were unable to speak out in relation to their business. 18% said they were worried about “backlash from the Trump administration,” and 9% said they were still figuring out how to respond.

“That’s probably the most disappointing thing when you see institutions in the community not showing any courage,” local investor Tim Harvey told TechCrunch, calling the past two months heartbreaking.

Investor Grove said her team is in regular contact with other members of the community, including portfolio companies, to see if they are doing well. She said restaurants are offering free meals while people help each other with rent. Minestar, a local technology nonprofit, plans to host a community event to bring people together to discuss next steps.

One Black investor said he found it ironic that police were standing alongside many others in speaking out against the government, just a few years after people in the city began protesting against police after the killing of George Floyd. It’s a new normal.

Meanwhile, another black founder said some of his white friends started driving him around the city for safety. He recalled sitting in a restaurant one day chatting with a friend when the television began showing live footage of ICE shooting another person. The atmosphere became somber, a reminder of how these attacks consumed every moment of life.

“I met a friend yesterday,” he said. “It was the first time he left the house since New Years.”