R.I. to create government-run venture capital fund for startups
In order to qualify for an investment, companies will have not received any — or very minimal — equity capital, including pre-seed and seed funds, and have a substantial presence in the state, according to Neil Martin, the managing director of financial programs for Rhode Island Commerce, who previously worked as the chief financial officer for the
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The maximum investment will be $250,000. Rogue Ventures must match that amount with at least equal private investment, according to Martin.
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In Rhode Island, venture capital funding is not as prominent as other states. The Providence area, for instance, brought in $169 million in venture capital in 2023, according to PitchBook, a platform that provides private market data. By comparison,
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The Rhode Island Venture Capital Fund will not focus on specific industries, Commerce spokesman Matthew Touchette told the Globe. It is also expected that most, if not all, of the initial $2 million in funds will be invested by June 30, 2026, he said.
It's not yet clear when businesses can apply for investment.
Most of venture capital investments are done in the private market. Outside of Rhode Island, government-backed venture capital funds aren't anything new.
In the Bay State, MassVentures
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In recent years, venture capital in the private market has also faced
While Commerce's board of directors voted unanimously to establish the fund, board member Donna M. Sams told Rogue Ventures co-founder and managing director Thomas Sperry that she wants regular updates on the status of the fund.
Oftentimes 'you look at the data that's out there, and these small businesses mostly stay the same size for a very long time, they aren't getting any bigger, and yet we keep investing money,' said
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'That needs to change,' added Sams. 'They should be getting bigger. That's what economic development means.'
Alexa Gagosz can be reached at
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