The Venture Center had an economic impact of $62.3 million in Arkansas from 2019 to 2023, according to a recent 62-page analysis released by Boyette Strategic Advisors of Little Rock.
Most of that impact — $44.8 million — was in Pulaski County.
The Venture Center, a business-focused nonprofit in Little Rock, aims to support entrepreneurs through accelerators, mentorship, community programs and strategic events. It was founded in 2014.
The report shows that the Venture Center’s impact grew in 2022 and 2023 compared to the previous three years. The organization had a total economic impact of $37.3 million during that period, up nearly 50% from $24.9 million. Operations were limited in 2020 and 2021 due to the COVID-19 pandemic.
In 2022 and 2023, $20.4 million of the economic impact is attributed to an increase to Arkansas’ gross state product, $15.9 million to labor income for the state and $1.2 million to state and local taxes.
The report also shows a multiplier of 1.78, meaning every dollar of initial economic activity by the Venture Center generated a total of 1.78 times that amount in overall economic impact.
The report also measured the impact of the organization’s accelerator programs. The FIS Fintech Accelerator generated approximately $258 million in private funding for participating startups in 2022 and 2023. Since the program’s inception in 2016, companies participating in the accelerator have raised nearly $924 million in capital during or after participation.
Arthur Orduña, executive director of the Venture Center, said the nonprofit was “very pleased” with the results of the study.
“Given the Venture Center’s size, to have generated $63 million in measurable economic benefit to the state over a five-year period, with $40 million of that coming from our AEDC-funded accelerators, is a testament to the effectiveness and value of our programs and the talent of our team,” Orduña told Arkansas Business.
“And what stands out to me, and should be very rewarding to our public and private sponsors and partners, is the proven multiplier effect that a dollar spent on supporting Venture Center initiatives generates almost $2 in economic benefit,” he continued. “That means we are truly moving forward in line with our mission and vision of helping raise entrepreneurial success in Arkansas.”
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