Mississippi stands on the brink of a transformative era. With a history steeped in agricultural and manufacturing industries, local leaders have recognized in recent years that, due to rapid technological change, the state’s evolution as an innovation-based economy is necessary to secure its place on the national stage.

The state recently securing $86 million in federal funding for small business and startups is a testament to this work. The 2023 Mississippi Innovation Plan underscores the critical need to nurture a robust environment to attract and cultivate startups, particularly by increasing the availability of risk capital. 

While renowned innovation hubs in the U.S. like Boston and the San Francisco Bay Area capture much attention from investors, a quieter but equally significant revolution is underway in cities like Austin, Nashville and Atlanta, and even smaller markets like Chattanooga, Huntsville, Asheville and Green Bay. Mississippi, with its unique potential but fewer established connections, must strategically leverage its resources to achieve its long-term goals in the venture capital arena. 

Laying the groundwork with local partners

In recent years, Mississippi has demonstrated a clear commitment to enhancing its startup ecosystem. Efforts from organizations like Innovate Mississippi, local angel networks, and the state’s nationally recognized universities have set the stage for significant growth. 

Our team at gener8tor, a national venture capital firm, has actively engaged with these local partners to understand the specific needs of Mississippi’s startup ecosystem. Through these conversations, two critical requirements have emerged: comprehensive founder education and support, and access to risk capital. By addressing these needs, we can identify and nurture local founders, ensuring they remain in Mississippi to contribute to the state’s growth rather than seeking opportunities elsewhere. 

Retaining homegrown talent

Glo, headquartered in Starkville, is a prime example of Mississippi’s potential as an investment-friendly ecosystem. Founded by two Mississippi State University students in collaboration with the MSU Center of Entrepreneurship and Outreach, Glo has achieved remarkable success. Initially recognized for their innovative product, Glo Cubes, the company has pivoted its target market to focus on children’s toys, where their product enhances sensory skills.

With a recent $1.72 million capital raise, Glo’s valuation has soared to nearly $20 million. In addition, Glo has renovated the historic Rex Theater for its offices, further proof of the economic impact startups can have on local economies. This is precisely the kind of company we need to support and retain within the state, ensuring local investors and customers benefit from their success. There are many more “Glos” in Mississippi waiting for support, investment and the opportunity to thrive locally. 

Driving progress and investment

At gener8tor, our mission is to foster investment in promising regions like Mississippi. We have a demonstrated track record of galvanizing startup ecosystems in small-to-mid-sized markets that are often overlooked by traditional venture capital funds, particularly those in the South and Midwest, without compromising returns. 

Mississippi is fertile ground for opportunity. It’s time to accelerate this progress, and we’re ready to hit the ground running. 

Our dedication to community-driven growth is evident in our track record. We have facilitated over $2.2 billion in total follow-on financing, created more than 12 thousand jobs, and witnessed 40% of our alumni raising over $1 million in follow-on financing or achieving acquisition. Additionally, 62% of our alumni have raised more than $250K in follow-on financing or achieved acquisition. 

Currently, we are raising a venture capital fund to invest specifically in Mississippi startups. In addition, we’re working closely with key partners, like Innovate Mississippi, and will be sponsoring this month’s Accelerate Conference.

Through targeted investment opportunities, we aim to ensure that the benefits realized from Mississippi’s innovative companies remain local, driving sustainable economic growth for the state. It’s time to unlock Mississippi’s full potential.

We invite Mississippi founders to connect with us and help drive this exciting new chapter for the Magnolia State. 

— Emily Wykle, regional vice president, gener8tor