Investment capital can still be tough to find for startups looking to stay in Rhode Island. But imagine the last 25 years without the Slater Technology Fund.
Since its launch in 2000, the quasi-public venture capital fund has invested $44 million in more than 140 early-stage companies. That investment attracted about $1.2 billion in additional investment.
And unlike strictly private venture capital funds that direct profits to shareholders, the state has been among the biggest beneficiaries. That’s because profits are redirected back into the fund.
The fund says its investments have had an economic impact on salaries alone of $909 million.
This week’s cover story on Slater’s genesis and its economic impact features vignettes of four companies that have benefited, including Flux Marine Ltd.
Slater has invested $350,000 in the Bristol-based manufacturer, which has sold enough boat motors to collect $30 million more from other investors.
Investing early and, when warranted, often sends a positive signal to private investors, says Flux CEO Ben Sorkin.
“When other investors see [Slater] continue to write checks, it gives them confidence and excitement,” he said.
The state’s initial $37 million in seed money has generated an additional $28 million that was put back into the fund. Slater now has about $30 million in assets and capital, including private funding.
Given that return, state leaders eager to prime a stagnant economy should consider upping Rhode Island’s investment in this clear success story.