Evidence is growing now that venture capitalists have Rhode Island on their radar screens. Earlier this month, for example, a Providence startup – ConnectEdu – obtained $600,000 from a consortium of investors from Rhode Island, New York and Illinois.
While the money involved may be modest by venture capital standards, the deal illustrates an important point. That is, if you formulate a real idea and develop a solid business plan around that idea, venture capitalists will find you.
Rhode Island's Market Has Changed. Developers, Builders, Investors and Sellers Must Change With It.
By Emilio DiSpirito IV License Partner | Engel & Völkers Oceanside Leader | The DiSpirito…
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ConnectEdu was founded by a group of educational professionals. Its president is Craig Powell, a 25-year-old Brown University graduate who co-founded the company after running a tutoring agency as an undergraduate.
ConnectEdu’s services include helping students select target colleges that match their interests; preparing students for entrance applications, essays and interviews; and helping them to prioritize their academic and extracurricular activities.
The company has defined a real need and come up with a way to fill that need. And now, as a result, it appears poised to make a national splash.
Just a few years ago the climate for venture capital was red hot. Money was being tossed around, until too many investors got burned. Now that climate has reached a more moderate temperature. But that doesn’t mean there isn’t money available, or that Rhode Island should not see itself as a breeding ground for burgeoning businesses.
Venture capitalists are looking for good ideas, accompanied by solid business plans that make sense – that suggest a significant return on investment. For a lot of reasons, Rhode Island is a good place to look.
There is an infrastructure in place, one that includes academia, health care, and now more than ever, biotechnology.
We in Rhode Island need to take advantage of that infrastructure by increasing our commitment and level of support for those very places that harvest good ideas. Such places include our public colleges and universities, organizations such as the Rhode Island Technology Council, and government agencies such as the Slater Centers.
The state also needs to be more aggressive in fostering relationships with private institutions, such as Brown, Bryant and RISD or the network of hospitals here that offer virtually limitless research capabilities.
A new governor will take office this coming January, as will a revamped General Assembly. There is a budget mess to tackle. We are sure to hear about the need to make significant cuts to various programs.
We challenge our elected officials to not only make those necessary cuts, but also to find where investments make sense. And to support those places that foster good ideas – and ultimately turn them into new jobs and new opportunities for an economy that badly needs them.
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