The Greenville star may be on the rise as a tourist destination and business center, but it is still surprising to know that Upstate has also become a hot spot for venture capital firms.
But the fact is that in the past two years, venture capital firms have been attracted to our area, with wealthy investors eager to help promising startups and novice entrepreneurs. Companies like Cultivation Capital, headquartered in St. Louis, Missouri, and Flywheel Coworking of North Carolina, have recently entered the local market, while companies based in Greenville, such as Vicinity Capital and VentureSouth, have seen an increase in their groups. investors.
The interesting thing is that these venture capital firms are coming to the Greenville market for different reasons and for different purposes.
An undercapitalized market
Cultivation Capital was founded in 2012 with around $ 400 million in venture capital investments. It announced an expansion to Upstate last year, and co-founder and managing director, Cliff Holekamp, said the decision was based on the fact that Greenville was “an undercapitalized market”.
“Part of our strategy is to focus on undercapitalized markets,” says Holekamp. “And that means not California, or New York, or Massachusetts. So, it really was the realization that if we want to continue to grow, we need to do a better job to create opportunities in other parts of the country. And the Southeast was the most logical place of expansion for us. “
So why did Cultivation Capital, whose main investments are in software technology, life sciences and agricultural technology companies, choose Greenville specifically as their destination in the southeast?
“It was really the ‘best of all worlds’ location,” says Holekamp. “South Carolina has a growing ecosystem in its own right, but we also have proximity to larger scenarios like Atlanta and we are not far from Raleigh-Durham. Therefore, Greenville puts us right in the middle between two major markets in North Carolina and Georgia, while giving us the opportunity to make a difference in the domestic market here. “
Stimulating entrepreneurship
Flywheel has been planning its expansion in Greenville for some time, and is not just bringing in investment capital. The company has partnered with Furman University to build an “innovation district” close to the campus, a space to bring together entrepreneurship partners and institutions in the Greenville region under one roof and to provide capital access for entrepreneurs from the beginning to the end. initial stage and stage growth.
And where Cultivation Capital saw an undercapitalized market, Flywheel saw something completely different.
“I think Greenville has built a reputation for a city that has done a good job of revitalizing its center,” said Peter Marsh, co-founder of Flywheel Coworking. “And it has a longer history of stimulating entrepreneurship than many of its similar communities in the Southeast. “
In fact, Greenville has been on the Flywheel’s radar for more than two years.
“As we are expanding,” says Marsh, “we are looking for markets that fit our business model in terms of being an active operator of innovation cooperation spaces and actually creating companies to be part of the community. And Greenville has always been at the top of our list as a potential location. “
Because they are coming
These two companies may have chosen Greenville for different reasons, but there are also some points in common. First, the city looks ripe for investment opportunities of all kinds.
“Investment opportunities are growing, and it’s not just about venture capital,” says Josh Rollins of Vicinity Capital, a Greenville-based company. “The big question is the variety of means of financing and investment that are opening up access to a wider range of investors and companies that are looking for capital.”
Rollins says some investment-friendly legislation that South Carolina passed a few years ago helped open the floodgates.
“This is one of my favorite things about the legislation under which we operate and which was just passed in 2016,” he says, “It’s called Regulatory Crowdfunding; 95% of the population has so far been limited to investing in public markets. More than $ 60 billion is invested in stocks, bonds, mutual funds and retirement accounts for residents in upstate counties. If only a small percentage of this were redirected to the business community, it would be a few billion dollars invested in ideas, jobs and growth that would shape their future ”.
What is the next
Without NEXT Upstate, however, these venture capital firms may not even have known about Greenville’s potential. NEXT was founded in 2006 by a group of entrepreneurs from Greenville with the aim of connecting innovative entrepreneurs to a support network and providing education and opportunities for growth. They currently provide support for more than 100 startups.
“When you’re looking at a new market, you don’t know where to start,” says Holekamp. “Having a very clear and obvious person to start with makes a big difference. I was introduced to NEXT very quickly, and they followed him from there and immediately connected me with several people. So, NEXT was really the defender for preparing us, acclimating and introducing me to the community so that I could make an informed decision about coming here. “
“It takes a lot of difficulty,” says Ken Brower, interim CEO at NEXT Upstate. “Greenville is a very pro-entrepreneurial village and I think everyone agrees. People understand and realize the importance of innovation for a market like Greenville. It’s not just about most more jobs, it’s about more Better jobs. This is our mission, and capital is the main pillar of that mission. So, we are very excited to have these new offers in town. “