Dec 7, 2023 - News

Venture capital interest jumps in Arkansas

Data: Arkansas Capital Scan; Chart: Axios Visuals
Data: Arkansas Capital Scan; Chart: Axios Visuals

Venture capitalists invested more than $270 million in Arkansas companies in 2022, according to the Arkansas Capital Scan released Wednesday.

Context: This is the third such report compiled by the University of Arkansas' Office of Entrepreneurship and Innovation (OEI) and the Northwest Arkansas Council.

Why it matters: The data help entrepreneurs and policymakers understand the availability of capital across the state.

  • "[W]hile not all small businesses and startups are seeking venture capital or bank loans, the flow of capital to early-stage companies is a good proxy for the health of an entrepreneurial community," executive director of the OEI, Sarah Goforth, said in a news release.

By the numbers: In terms of industries, consumer products and services led the pack in Arkansas, receiving about 34% of the dollars during 2022.

  • NWA received the most venture capital funding in the state — about 65% of all deals.

Yes, but: Arkansas still stands far behind other states in terms of investment.

Of note: The total number reported by the Capital Scan is nearly $70 million above the $201 million reported using PitchBook's data earlier this year.

Go deeper: Venture capital moves — slowly — to middle of the country

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