The term “startup” has been glamorized since the tech boom responsible for Apple and Facebook. Every entrepreneur and investor dreams of discovering the next world-changing idea, but what does it take to turn an idea into a startup and a startup into a thriving business? Entrepreneurship is a dynamic and challenging path few travel – even fewer apart from the coasts.
Acting as a magnet and amplifier for founders and investors, StartupNWA, which is facilitated by the NWA Council, is working to dissolve the barriers to success that local founders face.
“We were shocked to discover that over half of our deal flows were coming from out of state," said StartupNWA Executive Director, Serafina Lalany. "This underlines a problem: That everyone between the coast experiences this lack of connectivity. If we can bring down the barriers to entry, then we can help a great number of founders."
Lalany would know. Having launched her career as a startup connector in Boston - one of the top cities for venture capital [VC] in the US - she is well-versed in what it takes to achieve early seed success.
"There's such a shortage of early-stage capital in this market," she said. "At least 90 percent of the investors we work with are not from here."
Speaking with local founders like Highway Ventures Partner Joe Comizio, this can be a double-edged sword. While the pool of capital dollars might be concentrated along the coasts, selecting a smaller niche environment like Bentonville can eliminate the small-fish-big-pond effect. Here, founders aren't working against the current as much as they may be in flooded VC environments like New England or Silicon Valley.
Comizio, a Virginia transplant, says their startup studio considered larger cities like Charleston and Denver before choosing Bentonville to launch. “Being in a big city, we were going to be small fish; it’s difficult to even get your foot in the door,” he said. “We wanted a vertically aligned city, and here, there’s a lot of access to different stakeholders. Plus, Bentonville is growing like crazy. It's just a good place to start businesses.”
Of course, it helps that Bentonville is home to the most successful retail brand in the world, and that brand is actively investing in innovative goods, services, and technologies while recruiting an impressive workforce and attracting corporate buy-in to the region. It’s this progressive environment that incubates assets like Hightag, Sober Sidekick, and Ordinal, which consequently attracts investors like Hivers and Strivers Capital Partner, Rachel Hobert.
"I could be anywhere, but I choose Bentonville because this is where ambition, innovation, and support come together in a way you won’t find anywhere else,” Hobert said. “Bentonville is becoming a powerhouse for founders and builders who think long-term and create things that truly matter."
Speaking of assets, one of Lalany’s first goals as the Executive Director of StartupNWA was to create a gathering space for builders and backers.
“Onward HQ started a bit as a passion project,” she said. “I really wanted to see a place like this exist here. I've been a part of starting these kinds of things in other markets. They are transformative for the community.”
Located in the heart of Downtown Bentonville, just above Onyx Coffee, Onward HQ offers a coworking space, private offices, and meeting rooms, as well as a calendar of exclusive networking events for connecting NWA startups, subject matter experts, and investors from across the country.
When asked about his experience at Onward HQ and launching a startup in Bentonville, Lalany’s husband and Hightag Co-Founder, Alex de la Fuente said, “We're now oversubscribed on our pre-seed round. It's an incredible community to be a part of, and it's been so exciting to watch it coalesce and expand at Onward HQ."
Adding to Hightag’s experience, Ordinal Co-Founder Jacob Herrington complemented Lalany’s efforts, celebrating some of the wins their AI startup has experienced since relocating to Onward from a similar space in Rogers.
“It has been great for us in terms of fundraising,” he said. “There's a lot of networking benefits, but also a lot of funders that work out of the space too.”
Funders like Ramsay Ball, Founder of Cannon Capital, a company that invests in early-stage businesses.
For Ball, working out of Onward HQ supports this purposeful phase of his career, where he’s looking to prioritize community development and support businesses that will make an impact.
“Growth for growth's sake is not good,” he said. “Quality growth, that’s what I’m about. This place is going to be such a critical part of it. Bringing companies and capital together.”
This convergence of proactive minds chose NWA with a spirit of goodwill is having a flywheel effect. As a community, we’re crafting an environment for founders that doesn’t require a secret handshake to get into the room - a place where rising tides truly lift all ships.
“I have been so quick to adapt to this place because this is really something special,” said Lalany. “Wouldn't you want to be a part of a community – of shaping it and making it into something that’s just a better way of living and working?”
"We were shocked to discover that over half of our deal flows are coming from out of state. Everyone between the coasts experiences a lack of connectivity. If we can bring down the barriers to entry, we can help a great number of founders."