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Report: Arkansas VC investment surged 117% in 2022 – Talk Business & Politics

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Report: Arkansas VC investment surged 117% in 2022 – Talk Business & Politics


The 2022 Arkansas Capital Scan, released Wednesday (Dec. 6) by the Northwest Arkansas Council, shows a substantial uptick in venture capital to Arkansas-based startups. Since 2020, there has been an impressive annual quadrupling of venture capital dollars, underscoring a growing interest in the state’s entrepreneurial ecosystem.

According to the report, venture capital investments in Arkansas totaled $270.8 million across 26 companies in 2022 — a 117% increase from the previous year. Northwest Arkansas continued to drive most of the funding, representing 65.4% of all deals in the state.

However, Arkansas falls behind many states in comparison. According to the report, non-coastal states like Michigan, Ohio and Utah, for example, attract billions of dollars in venture capital funding each year. Additionally, angel investments, sourced from individual investors rather than venture capital firms, exhibited a declining trend, trailing behind the levels seen in neighboring states.

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“This important research underscores the significant investments being made to develop a community of founders and investors in Northwest Arkansas, but we have a long way to go,” Nelson Peacock, president and CEO of the Northwest Arkansas Council, said in the release. “We’re striving to make Northwest Arkansas one of the best places in the country for startups, and this report provides important tools for Arkansas leaders to consider to develop effective policies and strategies to drive innovation and economic success across the state.”

In its third year, the Capital Scan project was developed in partnership with the University of Arkansas Office of Entrepreneurship and Innovation with a grant from the Walton Family Foundation. It aims to shed light on the availability of early and growth-stage capital for Arkansas-based startups and small businesses, painting a picture of Arkansas’ economic resilience and evolving investment landscape.

“The goal of the report is to quantify an understanding of the availability of capital across the state, as many of the policies and incentives that support entrepreneurship are statewide,” said Sarah Goforth, executive director of the Office of Entrepreneurship and Innovation at the UA’s Sam M. Walton College of Business. “And while not all small businesses and startups are seeking venture capital or bank loans, the flow of capital to early-stage companies is a good proxy for the health of an entrepreneurial community.”

KEY ECONOMIC HIGHLIGHTS
Despite global trends indicating a decline in equity-based investments, Arkansas saw exceptional growth, including a 47.9% increase in business applications compared to 2019. Changes to state tax regulations in 2022 also reduced individual and corporate income tax rates, positioning Arkansas as having the fourth-lowest cost of doing business in the country.

Two years after the onset of the COVID-19 pandemic, Arkansas’ growth continued, surpassing the recovery boom of 2021. More than $270.7 million in institutional venture capital was invested into 26 Arkansas-based startup companies in 2022, compared with $16.4 million in 2020 and $127.4 million in 2021.

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These investments supported a diverse range of industries, with notable growth in the advanced mobility, agriculture, and fintech sectors. Of the three comparator states analyzed in the report (Tennessee, Missouri, and Oklahoma), only Oklahoma saw growth in later stage venture capital activity between 2021 and 2022.

At the same time, investment at the earliest stages slowed in Arkansas in 2022 and across all comparator states. Just over $17.7 million in angel investment was deployed in Arkansas in 2022, compared with $55.3 million in 2021. The average deal size also decreased by 60%, reflecting changes in funding dynamics. Despite challenges, key sectors such as consumer products and services, information technology and health care received notable early-stage investments.

Businesses founded by women and people of color received less than their counterparts as well, highlighting the need for inclusive growth strategies to ensure equitable distribution of venture capital.

REGIONAL INSIGHTS
The report shows significant regional variations in capital access, indicating that Northwest and Central Arkansas dominated the angel/seed investment scene with 95% of all deals in the state.

Northwest Arkansas-based companies also received the lion’s share of investment at the later stages of institutional venture capital, totaling $207.9 million. Central Arkansas-based companies received a total of $62.9 million in investment. No institutional venture capital investments were reported in other regions of the state.

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The report also includes a special section on crowdfunding, showcasing a 92% increase in funds raised in 2022 compared to the previous year. Crowdfunding campaigns in Arkansas, totaling $2,832,300, exemplify the accessibility and attractiveness of this relatively new funding avenue for entrepreneurs.

For a PDF of the 41-page report, click here.



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Arkansas

Latest Arkansas projections set tantalizing Super Regional SEC showdowns

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Latest Arkansas projections set tantalizing Super Regional SEC showdowns


FAYETTEVILLE, Ark. — Arkansas’ official stay in Hoover and the SEC Tournament lasted just over three hours. The Razorbacks were one of two top four seeds to go one-and-done.

The No. 7 Ole Miss Rebels took a five-run first and made it stick in a 5-2 win.

“I would much rather be playing at least one more game and hopefully two just to kind of stay on rhythm a little bit,” coach Dave Van Horn said. “If we’d have been here since Tuesday and maybe won three in a row and we had to win two or three more to win it, maybe that’s more than you need. I might answer you differently. But it’s our first game. We weren’t ready to go home.”

Van Horn’s team should be a lock to be a top eight national seed, giving Arkansas home field advantage through the first two rounds of the postseason, should they advance.

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They rank No. 5 in the Rating Percentage Index (RPI).

It might not be long before Ole Miss and Arkansas matchup again. As Arkansas awaits its fate with the selection show Monday, D1Baseball has the two teams facing off in a potential Super Regional. Here’s the full regional as of Saturday morning,

1. Arkansas (3)
2. Kansas
3. Creighton
4. Little Rock

1. Ole Miss (14)
2. TCU
3. Stetson
4. North Dakota State

Getting to the next round is the first order of business and lurking as the two seed in the Oxford Regional is TCU, which knows a thing or two about knocking out a SEC host school, blasting

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The Hogs will be very familiar with the opponent of the first game in the potential regional. They have already faced the Arkansas-Little Rock Trojans in a two-game midweek series in mid-April, in which Arkansas pitching staff spun two straight shutouts, 10-0 and 4-0.

Ole Miss vaulted themselves back into hosting contention with at least a run to the SEC semifinals. The Rebels are now the No. 14 seed in the same projection, setting a potential rematch.

With up to 13 teams in the SEC making the field of 64, the SEC holds at least half of the regional hosting sites in both the D1Baseball and Baseball America’s bracketology.

Baseball America has another potential SEC rematch. The Tennessee Volunteers also brought themselves back into hosting contention with a semifinal run to the SEC Tournament, taking out No. 1 Texas before getting run-ruled by Vanderbilt.

The Volunteers just left Fayetteville to close the regular season, losing two out of three, could be making a return trip if chalk holds.

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Here’s Baseball America’s latest Bracketology:

1. Arkansas (3)
2. Northeastern
3. Virginia
4. Central Connecticut

1. Tennessee (14)
2. West Virginia
3. East Tennessee State
4. Bryant

The No. 3 seed in Arkansas’ regional could prove to be quite the challenge. Virginia was ranked the No. 2 overall team in D1Baseball’s preseason rankings.

The Razorbacks will await its fate 11 a.m. Monday when the full field of 64 is revealed on ESPN2.

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“We’ve got to tighten up as a group,” Van Horn said. “We can’t let that happen again. We need to have a good week back in Fayetteville and get ready to go.”



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Ole Miss Outfielders Have Violent Collision During SEC Tournament Win vs. Arkansas

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Ole Miss Outfielders Have Violent Collision During SEC Tournament Win vs. Arkansas


The Ole Miss Rebels had a scare in the outfield during their win over Arkansas in the SEC Tournament on Friday. While the ‘Rebs won 5-2, two of their outfielders were involved in a violent collision on a play where Razorbacks second baseman Cam Kozeal scored on an inside-the-park home run.

Kozeal hit the ball to right-center in the bottom of the 2nd inning and the ball was right between Ole Miss center fielder Isaac Humphrey and right fielder Ryan Moerman. Humphrey and Moerman ran into each other full-speed. Gloves, hats and sunglasses went flying. Moerman got the worst of it and was slow to get up while Humphrey was able to get up and limp to the ball.

Humphrey was able to shake it off and stay in, but Moerman had to leave the game.

Moerman, who started all 57 games for Ole Miss this season, hurt his knee on the play and is also in the concussion protocol according to the Clarion Ledger. The Rebels will take on LSU in the SEC Tournament semifinals on Saturday afternoon.

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SEC Baseball Tournament 2025: Ole Miss to take on Arkansas in Quarterfinals

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SEC Baseball Tournament 2025: Ole Miss to take on Arkansas in Quarterfinals


After knocking off the Florida Gators in Round 2, the Ole Miss Rebels are now tasked with beating the two-seed, Arkansas Razorbacks in the quarterfinals.

In the new SEC Tournament format, the double bye holds even more weight as there is no longer double elimination rounds. The Razorbacks have the advantage and/or option to throw their ace against the Rebels second starter, which matters.

Back in early March these two teams squared off when Arkansas was the third ranked team in the country. After winning Hunter Elliott’s Friday night start 10-6, the Rebels pitching staff gave up 12 runs in each of the next two contests.

Riley Maddox was the starter in that contest and he gave up three runs across four innings while the bullpen gave up eight over the remaining five innings. It will likely be Maddox on the bump again today and Coach Mike Bianco will need Maddox to bring his best performance for one more resume building win.

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The Razorbacks are 6-4 over their last four contests which includes a series win over Tennessee, a series loss against LSU and a sweep over then #1 Texas. Last season, Arkansas was known for their incredible pitching staff. In 2025, the Hogs just score… a lot.

In that 10 games stretch they have scored 70 runs, for an average of seven runs per contest. Ole Miss is 4-7 in SEC contests in which they give up 7 or more runs. The Rebs are also 6-4 on SEC Saturdays, typically Riley Maddox days. They are similarly 6-4 against SEC #1 starters.

What does all this mean? It’s a toss up. Maddox will have to limit the damage and go five to six innings. The Rebels offense needs to find its stride to keep up with a good Razorback offense.

Assuming weather cooperates, Ole Miss and Arkansas will play Friday at 3:00.



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