Jeff Standridge, Acxiom Corp.
In the big picture of the state’s emerging tech startup ecosystem, Conway could be ready for its close up.
The city of roughly 70,000, situated on the northern edge of the Little Rock metro, usually gets lumped in with central Arkansas when the talk is the emerging regional ecosystems in greater Little Rock and northwest Arkansas.
But the “city of colleges” and soon-to-be home of two major hospitals is poised to contribute its own big hitters to the state’s tech startup lineup. Downtown Conway already is attracting tech startups, drawn to the talent pool and quality of life.
Jeff Standridge, vice president of audience solutions at Acxiom Corp. of Little Rock, was among a group of co-founders who earlier this year created the early-stage seed fund Cadron Creek Capital. The Conway group launched in March, very much under the radar, and began soliciting investors in June. It’s raised $800,000 from roughly 30 investors, almost all of them from Conway, and many of them first-time investors.
The fund has invested in three startups and plans to add about seven more before launching Cadron Creek Fund II sometime next fall. The group hopes to add more follow-up funds every 18 months or so, and intends to work closely with the Conway Area Chamber of Commerce and the University of Central Arkansas to bolster the regional startup environment.
Standridge, a 2004 Arkansas Business 40 Under 40 honoree, said the fund’s investment strategy is to provide bridge funding between founder and Series A/B capital and also to provide guidance and mentorship necessary to accelerate growth.
“As such, our fund membership is comprised of entrepreneurs, executives, technologists, consultants, operators, and emerging and seasoned investors,” Standridge said.
Cadron Creek’s targets primarily will be early-stage tech startups in the state and its seed and Series A investments will range between $50,000 and $150,000. All decisions to invest will require a majority vote of fund membership, Standridge said.
On the trip home to Conway from the Northwest Arkansas Tech Summit on Tuesday, Standridge shared his vision for the fund and startup growth in Conway with Arkansas Business.
AB: Describe your specific role with the fund.
JS: I serve as co-founder of Cadron Creek Capital, along with Kenny Kinley and David Grimes. We serve as the chief cooks and battle-washers of the fund.
Our major role is to ensure that the companies that get the opportunity to pitch to Cadron Creek Capital are strong companies, worthy of investment such that we honor the time commitment of our members. We also serve as advisors to the members in terms of due diligence processes and investment deliberations. Finally, we take our fiduciary responsibilities in ensuring financial transparency very seriously.
AB: Is this overdue for Conway?
JS: It is very much over due for Conway. We have so many assets in Conway that should make us the leader in central Arkansas for fostering data or tech-oriented and life science-based startups. But we have only recently begun to explore what it will take to step into that role.
Conway has over 1,800 Acxiom employees, a large [Hewlett-Packard] facility and multiple smaller tech-oriented companies, as well as tremendous talent being educated at UCA, Hendrix [College] and Central Baptist College. We have a very rich history with Conway Regional Medical Center and soon, will have a new Baptist Hospital. The community orientation of our public utility – Conway Corporation – and the high-speed internet they provide are unrivaled in the region. The Conway Chamber and the Conway Development Corporation provide tremendous leadership to the shaping of Conway’s future.
Combine all of those assets with the quality of life here in Conway, and these factors make Conway a prime location for data-oriented, tech-based and health care-based startups to receive funding, connect with experienced advisors and attract employees.
No one has ever attempted to organize and mobilize the venture capital that exists right here in Conway to help us be a startup leader. Cadron Creek Capital is one piece of the puzzle to growing the startup ecosystem in Conway.
AB: Describe the potential role that UCA plays in developing an environment in which it can churn out tech-based startups.
JS: UCA is another critical piece of that puzzle. It has a tremendous opportunity to play a huge leadership role in helping us build out the startup ecosystem, not only in Conway, but across central Arkansas and beyond.
Under the tremendous leadership of President Tom Courtway and Dean Michael Hargis, UCA’s College of Business is well positioned to play a very important role in this regard. The fact that UCA’s largest college is the College of Health and Behavioral Sciences gives UCA a very unique opportunity to foster entrepreneurship among these health care practitioners.
Finally, the UCA Foundation and the Division of Outreach and Community Engagement have an opportunity to move more quickly than a traditional academic institution is accustomed to moving. This is absolutely critical in supporting the startup ecosystem. This is a huge evolution from the traditional role of UCA, but under the leadership of President Courtway and Dean Hargis, I am confident this transition will happen quickly.
AB: Tell us about the investors.
JS: To date, we’ve raised about $800,000. Not bad for a first time fund. We haven’t raised any funds from large institutions. The fund is made up of about 30 individuals, virtually all of whom reside in the Conway area. About two-thirds of our investors are very new to venture investing. Only about a third has been involved in venture investing at all.
So, in addition to raising capital for startups, we’re also working hard to raise the overall venture investment acumen in our community. Our group is comprised of executives, entrepreneurs, physicians, and a few retired executives as well. We are very pleased to have Jeff Amerine from Fayetteville as an investor. Jeff, an Innovate Arkansas advisor and principal of Startup Junkie Consulting, is a change agent for the entire state of Arkansas as it relates to creating and cultivating a startup ecosystem. Having his investment in the fund was a tremendous validation that we were on the track, but having him personally involved in the fund has provided tremendous value to us all.
In fact, Cadron Creek Capital is very closely modeled after Kristian Andersen’s Gravity Ventures Arkansas, based out of Little Rock, and Jeff’s Tonic Fund, based in Fayetteville. They were both very open and willing to provide guidance, direction and advice in the early days of the fund.
AB: Describe how the tech startup ecosystem in central Arkansas has evolved since you’ve been at Acxiom, and the role Conway could play in its continued growth
JS: I’ve been at Acxiom for almost 18 years and am more excited about its future than I have been in a long time. But when I began with Acxiom in early 1998, the startup ecosystem was virtually non-existent — at least to my knowledge. Critical players like Jeff Stinson and the Fund for Arkansas’ Future; Kristian Andersen and Gravity Ventures; Ted Dickey and Mike Smith with Innovate Arkansas; and Jeff Amerine with Startup Junkie and Tonic Fund; and a host of others have done a tremendous job of putting us on the map. The success of John James’ Acumen Brands in northwest Arkansas has had a tremendous impact on the entire state, not just the northwest.
I have been so impressed and pleased with the degree to which all of these guys work together for the good of Arkansas, as well as how generous and giving they are of their time.
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