Rhode Island – the startup state

One of Rhode Island’s best-kept secrets is how fertile this state is for new companies seeking a hospitable business environment in which to grow.

After winning the Rhode Island Business Competition two years ago I learned firsthand about the startup landscape here that is helping to nurture a remarkable – and growing – number of innovative companies which already are creating jobs and promoting economic growth. Consider what makes Rhode Island so welcoming to startups:

n A strong higher education system. Johnson & Wales, Brown and Bryant universities, Rhode Island School of Design and the University of Rhode Island all have internship programs that develop a highly talented pool of students. Many of the students want to remain in Rhode Island to take advantage of its affordable cost of living and quality life- style. The job opportunities in R.I.’s startup world make this possible.

n The state-supported Innovate Rhode Island Small Business Fund. This unique program provides grants to small businesses to defray the cost of hiring interns from local colleges and universities. We’ve taken advantage of this several times, giving us the opportunity to identify and work with some highly talented students we would be interested in hiring after graduation.

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n The startup community itself. It has become a closely knit group of business owners willing to help other emerging companies solve problems. For example, when I need advice on programing issues, I call Jon Bittner at Splitwise. Similarly, many people at ShapeUp, a pioneer in health and wellness, helped pave the way for my company to introduce the country’s first health and wellness discount for worker’s compensation.

n A strong mentoring network. This may be by far the state’s strongest competitive advantage. The value provided by people who are committed to helping new companies grow cannot be overstated. They include Betaspring pioneers Alan Tear, Melissa Withers and Owen Johnson, angel investor Bill Cesare, and serial entrepreneur Danny Warshay. Others, like, R.I. Business Plan Competition co-chairs Peggy Farrell of Hinckley Allen & Snyder LLP and Anthony Mangiarelli at Kahn, Litwin, Renza & Co. Ltd., open doors to some of the savviest businesspeople, which often makes all the difference to startups.

This collective effort is working. Startups are creating jobs and keeping Rhode Island’s most talented graduates in the state. ShapeUp has grown from two Brown medical students to a national company with more than 100 employees in Rhode Island, before Virgin Pulse bought it earlier this year. Andera, a pioneer in banking software, grew rapidly and was acquired two years ago by Bottomline Technologies for $45 million. Splitwise created an app for sharing expenses that now has over 2 million users. There are many others, like Premama, HMSolution, Siren Marine, Newport Biodiesel, Maternova, StormTree, NuLabel Technologies and FarSounder. The bottom line: They’re all growing and contributing to the Rhode Island economy.

People are often surprised when they learn about the success of our local companies. They needn’t be. After all, we’re the startup state. •

David Bedard is president of CompNet Insurance, in Providence, which enables small businesses to buy worker’s compensation insurance online.

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