Arkansas economic developers and entrepreneurs sought to fill a gap in the state’s startup world in hopes of increasing the survival rate of new companies.
The state has its share of traditional accelerator programs, but long-term services to nurture young companies over the long haul were lacking.
So the Arkansas Economic Development Commission and Startup Junkie of Fayetteville partnered to form the Arkansas Innovators, Startups & Entrepreneurs (ARise) program.
A traditional accelerator program may last up to 12 weeks, with startups gaining information and support throughout that period, but long-term services are rare.
And though Arkansas has “great” accelerators, the ARise program is different because it’s geared toward long-term support for technology and technology-enabled companies across Arkansas, program manager Kristopher Adams said.
Participants in ARise will receive a variety of continued services for free, including startup consulting and coaching, capital access navigation, a subject matter expert network, industry connections and access to entrepreneurial resources.
And while ARise has that core lineup of services, Adams said it will adjust to offer what businesses need as they grow in hopes of increasing startup survival rates.
“That’s the way we hope to serve them long term,” Adams said. “To be there right alongside them every step of the way, and to learn from them.”
ARise officially launched June 20, and Adams said the goal is to get 100 companies participating as quickly as possible.
“We’re going to grow beyond that,” Adams said. “But once we hit 100, we feel we can get a good pulse on what types of companies are involved and draw out some common themes.”
To participate, a company has to meet three criteria: It must be Arkansas-based (relocation is welcomed), scalable and tech or tech-enabled.
Adding the tech-enabled label expands the number of companies that can join, Adams said. It really just means a company’s business model is fundamentally connected to technology in some way.
And as of Aug. 9, ARise already had 71 applications to join the program, with companies from across the state participating.
Joseph Batta-Mpouma, CEO of Fayetteville-based CelluDot, one of the first ARise participants, said it’s impactful that the program offers valuable resources to Arkansas businesses free of charge, unlike similar programs.
“ARise gives us the opportunity to have consulting, to tap into resources without having to pay anything,” Batta-Mpouma said. He also emphasized that giving entrepreneurs space to grow their business with no upfront cost is “big.”
CelluDot aims to solve pesticide drift with a biopolymer technology that keeps agricultural chemicals at the site of intended use. Batta-Mpouma said he hopes participating in ARise will connect CelluDot to agricultural investors, consultants and customers.
Another participant is Huntsville-based Cureate, a food-tech and business development company that focuses on local food and beverage supply systems. Cureate founder and CEO Kim Bryden said that she hopes ARise can connect Cureate to larger businesses looking for the tech solutions Cureate offers.
She also said long-term support allows for more than just a “snapshot” of a company’s needs.
“Your needs as a business owner change so much,” Bryden said. “What I needed in January is not what I need right now, and we’re still in the same calendar year.”
Rebranding
ARise is the branded name of the Arkansas Technology Commercialization Center, which was under contract with Winrock International from 2008 to 2023 as Innovate Arkansas.
The AEDC put the contract up for bid last fall, when Startup Junkie won the contract, creating ARise. Winrock kept the Innovate Arkansas name.
Since its inception in 2008, the program has assisted more than 200 clients that have brought $939 million in revenue to the state. These clients have also created more than 6,000 Arkansas jobs, received $50.9 million in federal grants and attracted a total investment of $473.6 million, according to the AEDC.
The Startup Junkie contract, which is valued at $848,460 annually, officially began March 1. It can be renewed yearly for up to seven years.
Statewide Reach
ARise’s mission goes beyond central and northwest Arkansas, aiming to foster tech entrepreneurship across the entire state, including in rural areas that may be overlooked by other initiatives.
“Our objective is to make sure that coverage is provided to the entire state,” said Esperanza Massana-Crane, director of small business and entrepreneurship development at the AEDC. “Part of our responsibility is providing economic opportunity to rural areas where there may be entrepreneurs that don’t have the resources, but have the talent and the drive to push their ideas forward.”
Adams emphasized the importance of this approach. He said Startup Junkie plans to hire outreach leads in rural areas of the state to “really have a good statewide presence,” and to not only grow tech throughout Arkansas, but also discover companies already doing “amazing things.”
“We just need to find them, find out what they’re doing and see how we can best support them,” Adams said. “I firmly believe that we’ve probably got some genius-level expertise out there that’s just hiding a diamond in the rough. And we want to uncover them.”
The program’s small-town reach is already showing, with a range of participants that includes companies from Bella Vista, Corning, Wynne, Stuttgart and Siloam Springs, as well as Jonesboro, Little Rock and Bentonville.
Through the statewide focus, the AEDC and Startup Junkie hope to create high-skill, high-wage tech jobs throughout Arkansas.
“It’s cyclical in that nature,” Adams said, adding that the money invested in startups early on comes back to benefit the economy through jobs paying higher-than-average wages.
Massana-Crane said creating high-wage opportunities for Arkansas is “very important” and can create a ripple effect that attracts talent, enriches the community and supports ancillary businesses.
And ARise aims to not only create those high-paying jobs, but to also develop a more diverse economy in Arkansas, especially when it comes to technology.
“We all want to see Arkansas become well known for the tech that it already has,” Adams said. “And we want to continue to develop into a much bigger, more robust state that’s tech-driven. So it makes sense that we all find a way to help each other and pull this off.”
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