(Updated, 5 p.m.)
WOONSOCKET – Research and data-mining company Location Inc., creator of locality-comparison website NeighborhoodScout.com, is leaving Rhode Island, jumping from its current location in Woonsocket to Worcester within four weeks.
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“We are excited to grow our business, and we’ve found that our location was hindering that growth,” said Andrew Schiller, company founder and CEO, to Providence Business News. “It’s very hard for us to recruit and maintain the unique technology talent that we need here in Rhode Island.”
Schiller noted that the company has been operating in Rhode Island for “six or seven years.”
Schiller expects to be able to attract more employees at the new location based on easier transportation options, including an MBTA station and a close-by off-ramp from Interstate 290. He also noted the proximity to the Massachusetts Biotechnology Research Park.
“We specialize in helping businesses and individuals find the right neighborhoods for themselves, and we finally needed to turn that level of analysis on our own situation,” he said.
Currently, Location Inc. only has two full-time employees and relies heavily on contractors. But, after a successful round of Series B financing closing this summer (the amount was not disclosed) and a pick-up in business, Schiller is looking to add in-house employees.
“It’s never clear how many, but right now we’re looking [to add] a couple [employees]” said Schiller, adding that the company will continue to work with some of the contractors in Rhode Island.
“We’ve had a long, hard thought about this … and to go to the next level, we need to position ourselves for that growth,” said Schiller. “We were unable to do so in Rhode Island.”
Location Inc. does currently have about $450,000 in preferred equity securities outstanding with the Slater Technology Fund, which could be subject to a penalty mechanism if “most of the employees” move out of state.
Nevertheless, if a penalty is applicable, it will not be determined until the next quarterly employee headcount report, according to Thorne Sparkman, Slater managing director, who noted that the “employee” status has some leeway and, in some cases, consultants can be considered employees.
Location Inc. said most of its personnel budget goes to consultants, most specifically to two firms based in Warren and Providence.
