John Cho was not very familiar with Providence a few months ago. As a South Korean entrepreneur in the health care sector, he never thought of Rhode Island as a hub for medical technology. So when he applied for a global program in South Korea and was partnered with the New England Medical Innovation Center in Providence, he was unsure what the state could offer him.
“I realized they [NEMIC] were completely in our sector, and they were the ones who could not just have opportunities to have funding but to give helpful guidance for this sector specifically,” said Cho, founder of Kangsters Corp., a South Korean startup that produces fitness products for wheelchair users.
Kangsters was one of the 17 startups that traveled to Providence in September 2022 for a six-week program coordinated by NEMIC called the Global Market Expansion. This is one of five global programs managed by the foundation in partnership with global entities, all aimed at reshaping how the world sees Providence while helping foreign startups break into the U.S. market.
“Startups, entrepreneurship, it’s not just a regional focus or national focus; it’s really a global focus, especially in the health care space,” said Lydia Shin Schroter, co-founder of NEMIC. “So it’s really important that Rhode Island plays a role and that we put ourselves on the map globally so that we can attract a lot of talent.”
Through these programs, NEMIC helps participating startups discover their market opportunities, develop business plans and strategies, write pitches and connect them with the right partners.
For startups such as Kangsters, expanding internationally can bring a lot of advantages, including accessing more investors and capital.
“Particularly in medtech space and life sciences, access to clinical experts is really critical to validate solutions for health care problems,” Shin said.
But it can also be a daunting experience.
“For a foreign entity, trying to build a business and do business in the U.S. is like opening a whole new world,” Cho said. “It takes so much to learn a whole new country and industry, but doing business is even harder.”
Thirteen additional startups are spending six weeks in the Ocean State, starting Jan. 30 and into March, as part of the Tech Incubator Program for Startups, or TIPS, another global accelerator program run by the Korea Institute of Startup & Entrepreneurship Development in partnership with NEMIC.
One of those startups is Promedius Inc., a medtech company based in Seoul, South Korea, that develops artificial intelligence-enabled solutions for medical imaging.
Promedius’ team came to Providence in December for a short, intensive program managed by the Korean Venture Business Association in partnership with NEMIC. During these four days, NEMIC helped several startups develop presentations and pitches for U.S. investors and craft a business plan for the U.S. market.
In February, the team will return for TIPS and will continue to finetune its business plan and elaborate on its pitch, while meeting with potential partners and investors.
While benefiting the foreign startups, these programs also contribute to Providence’s growth and economic development. Startups traveling to Providence – mostly funded by their Korean partner – invest a significant amount of capital in the city, contributing to the hospitality sector and marketing Rhode Island as a destination. Their presence also attracts investors.
“When we have this talent coming in, global investment by the corporations will increase,” Shin said. “Investors for global market will come into the marketplace so they can invest along with the U.S. companies. We have to look at it overall, how important it is for the development of Rhode Island.”
Providence has trailed behind some of its more popular neighbors, such as Boston or Cambridge, Mass., which have each garnered a reputation as a medical and technological hub around the world. But Providence, to many, remains mostly unknown.
NEMIC is hoping to change this, making Rhode Island – and Providence – a medtech hub.
“Through the program, people are recognizing Rhode Island not just for its close proximity to big cities, to Cambridge or New York, but they’re beginning to understand the value we provide to them and to understand this is a center of development for medtech,” Shin said. “That recognition is important.”
A few years into the programs, Shin said that “selling” Rhode Island to global partners has become easier. Already some are recognizing both NEMIC’s expertise and network of partners and Providence’s extensive resources, including active participation from local clinicians, researchers and medical schools such as Brown University. A lot of startups saw this, too.
“They loved being in Providence. A lot of them want to move to Providence and have it as their hub,” said Maey Petrie, director of programs and business development at NEMIC. “And several ended up incorporating in Rhode Island and in the United States. … That’s a big win for them and for the state and for us.”
Kudos to Aidan Petrie and Lydia Chin Schroter.