Richmond-based incubator Startup Virginia is partnering with investment group VentureSouth to bolster the region’s entrepreneurial environment. The collaboration aims to expand Virginia startup investment opportunities, which have been lacking in comparison to other regions. The partnership led to the formation of VentureSouth, Virginia, an angel investment network that will operate out of and provide funding to early-stage startups in Richmond and other regions in Virginia. VentureSouth already has several portfolio companies in Virginia, and plans to increase the state’s investor base as the new group gains traction. Startup Virginia will also play a role in attracting more angel investors to the network by educating them on the importance of angel investment.
Partnership Announcement
Richmond-based incubator Startup Virginia and investment group VentureSouth are partnering to grow and strengthen the region’s already rich entrepreneurial ecosystem.
Local Investment Opportunities
Richard Wintsch, executive director of Startup Virginia, said Richmond has long been a hub in the commonwealth for startups and innovation, but it’s lacked the same local investment opportunities other regions like Hampton Roads have with 757 Angels, of Norfolk, and CAV Angels, of Charlottesville.
Formation of VentureSouth, Virginia
VentureSouth is based in Greenville, South Carolina, and has a network of more than 300 accredited investors across the southeast. Wintsch said that introduction led to the formation of VentureSouth, Virginia, an angel investment network that will operate out of and provide funding to early-stage startups in Richmond and other regions in Virginia.
Expanding Investment Opportunities
“Founders have told us [Startup Virginia] does a good job in identifying and supporting Virginia-based deals, but once they get to a certain point, they have to look outside the state,” he said. “Our partnership with VentureSouth will expand the amount of investment opportunity to Virginia startups.”
Growing the Investor Base
Charlie Banks, managing director at VentureSouth, said the group already has a handful of portfolio companies in Virginia, and as the new group gains traction, it will continue to increase the state’s investor base.
Educating Angel Investors
Wintsch said Startup Virginia would play a role in helping to draw more angel investors into the network.
“We’re hopeful we can grow a very successful chapter by continuing to educate them on the importance of angel investment,” he said. “To grow a successful entrepreneurial ecosystem, you need investors to be successful. If we can make them so, they’re more likely to invest in earlier-stage companies.”
Question & Answer
What is the purpose of the partnership between Startup Virginia and VentureSouth?
The partnership aims to expand Virginia startup investment opportunities by forming an angel investment network to fund early-stage startups in Richmond and other regions in Virginia.
Where is VentureSouth based and how many accredited investors do they have?
VentureSouth is based in Greenville, South Carolina, and has a network of more than 300 accredited investors across the southeast.
How does the collaboration between Startup Virginia and VentureSouth benefit Virginia startups?
The partnership will expand the investment opportunities available to Virginia startups, allowing them to receive funding locally rather than having to look outside the state as they grow.
What role will Startup Virginia play in attracting more angel investors to the network?
Startup Virginia will educate angel investors on the importance of angel investment, aiming to grow a successful chapter and increase the investor base for early-stage companies in Virginia.
