Minneapolis tech founders pause work as ICE raids disrupt operations, community
Federal immigration enforcement in Minneapolis has effectively halted normal business operations for multiple tech founders and investors, who told TechCrunch they've redirected time from company-building to community support activities.
The disruption stems from "Operation Metro Surge," which deployed 2,000 additional ICE agents to the region starting January 6. The operation has resulted in fatal shootings of two U.S. citizens, Renee Good (January 7) and nurse Alex Pretti (January 24), along with widespread reports of racial profiling and enforcement actions near schools and workplaces.
Business impact
Eight Minneapolis-based founders and investors described significant operational challenges. One Black founder, speaking anonymously to protect staff, said he now carries his passport despite being a U.S. citizen. "It's hard to focus; it's been a challenge just navigating even my team through it," he said.
Investor Scott Burns reported spending workdays packing food at churches for residents too frightened to leave homes. "It was like what happens after a natural disaster," he said, noting collaboration across race and class lines.
School attendance at one charter high school dropped below 50% (from 800 students), indicating broader economic disruption as families alter daily routines.
Corporate response draws criticism
Target CEO Michael Fiddelke joined 60 Minnesota executives signing a January 25 letter calling for "de-escalation" but avoided condemning ICE directly. The American Federation of Teachers criticized the response as inadequate, arguing it endangered community relationships.
Protests at Target locations in Chicago, Philadelphia, and Seattle followed. Large Minnesota companies funded millions in grants through the Minneapolis Foundation for affected businesses, though some investors told TechCrunch the corporate response was insufficient.
Minneapolis, St. Paul, and the state filed lawsuits seeking temporary restraining orders against racial profiling and enforcement at sensitive locations like schools.
Operational context
The timing is significant for Minnesota's tech ecosystem, which supports numerous startups and programs including Launch Minnesota Innovation Grants and the Minnesota Emerging Entrepreneur Loan Program. These initiatives specifically target underrepresented founders, populations disproportionately affected by current enforcement actions.
A Brookings Institution analysis noted ICE's rushed hiring practices (some agents hired in six minutes at age 18) and reduced training periods (47 days versus previous 22 weeks), factors cited in increased use of force incidents.
The situation demonstrates how federal policy changes can create immediate operational challenges for regional tech hubs, independent of companies' policy positions. For CTOs and founders managing distributed teams or considering Minnesota expansion, the disruption represents a measurable business continuity risk.
Minneapolis previously navigated similar community-wide disruptions following George Floyd's killing in 2020. The current situation differs in that federal rather than local enforcement drives the instability, limiting municipal government's ability to manage operational impacts on local business.