by Jeff Della Rosa (JDellaRosa@nwabj.com)
The University of Arkansas has released the second edition of a report that examines the funding options available to startups and small businesses in Arkansas. Amid a nationwide surge in investments in 2021, equity-based investments in Arkansas significantly eclipsed 2020 levels across all stages, including seed, angel, early-stage venture capital and late-stage venture capital.
The new report, 2021 Arkansas Capital Scan, shows the number of venture capital deals in Arkansas doubled to 12, and their value rose by 674.9% to $127.4 million from 2020. Meanwhile, seed and angel investments increased by 130% to $55.31 million. And 19 federal grants were awarded to 13 Arkansas small businesses and entrepreneurs totaling $6.99 million in investment.
The report also shows that white male founders received about 90% of seed funding, while roughly the remainder went to businesses started by those who were both women and people of color. The most significant angel and seed investment was $9.7 million, which went to medical marijuana manufacturer Good Day Farm in Pine Bluff. The business also raised the second-largest round of venture capital funding of $31.2 million later in the year. Fayetteville-based farmland investment firm AcreTrader raised $52 million in venture capital funding in 2021.
https://talkbusiness.net/2023/02/ua-report-marks-funding-disparities-among-arkansas-entrepreneurs/
