The Shift: New startup studios set to energize entrepreneurs
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Two firms with backing from the Walton Family Foundation are looking to jumpstart 15 new companies in Northwest Arkansas in five years, founders tell Worth.
Why it matters: As the area's economy broadens beyond dependence on a few large companies, startup studios like Highway Ventures and Fieldbook Studio will be key to building a regional entrepreneurial ecosystem and attracting talent.
Driving the news: Founders for both companies will present for the first time Wednesday evening as part of the Midcon VC Summit, set for Tuesday-Thursday in Bentonville.
- Cortodo Ventures of Oklahoma City organized the summit that will convene at least 250 investors, entrepreneurs and VC insiders.
State of play: Lane Patterson and Dylan Terry, both partners of Highway, tell Worth the studio will license intellectual property (IP) related to alternative mobility from the U.S. government's federal labs. They'll develop a commercial company around the IP — hire a CEO and other staff — then move it into the public sector.
- "Alternative mobility" is broad. It could be for flying taxis or tech to protect planes, boats and cars from cyber attacks.
- They plan to launch 10 companies in five years — all required to be based in Arkansas.
Meanwhile, Fieldbook, backed with $10 million between the Walton Family Foundation and Arkansas Finance Development Authority grants, will focus on software-as-a-service for the retail supply chain.
- Joshua Stanley, managing partner, tells Worth the plan is to launch five Arkansas-based companies in the next three years.
- Different from Highway, Fieldbook will develop its own ideas for commercial products based on observations and analysis of pinch points in the supply chain.
Behind the scenes: Patterson and Terry are about to close on a $5 million investment round that will be used to allot each of its startups $500,000 in operating capital, they said.
- Fieldbook's startups will be allotted $750,000 to $1 million to help them incubate into viable companies.
Context: The Walton Family Foundation grants were made to VentureWell, a nonprofit supporting science and technology entrepreneurship, which, in turn, funds the studios.
Between the lines: Stanley and his team launched Cartwheel startup studio, but now work with High Alpha Innovation — a sort of startup consultant for large companies — and will manage Fieldbook.
- Stanley is still CEO of Cartwheel but is working to find a day-to-day general manager.
Worth's thought bubble: With these investments and the recent announcement of AI startup Xtremis locating operations near Fayetteville, it feels like NWA is in the midst of a major entrepreneurial turning point.
- Can't wait to see how these all play out.
⚡️ The Shift is a regular feature to catch up quick on what's happening in Arkansas' economy and entrepreneurial ecosystem.