How Mississippi's Startup Accelerator Is Fueling a Tech Revolution and Creating Jobs

Mississippi's Tech Scene: A New Dawn

Mississippi has long lamented its shortage of technology startups and venture capital, a challenge dating back to the 1990s dot-com boom. Now, Innovate Mississippi is stepping up with a promising solution. Through its 12-week startup accelerator program, CoBuilders, the nonprofit is providing funding and training to seven local tech startups, aiming to spur economic growth and job creation.

Empowering Entrepreneurs with Guidance and Capital

Take the story of Alex Bucklew and Johnathan McAdory, founders of SimpleScript. Their innovative product aggregates prescription drug discounts to find the best prices. As first-time entrepreneurs, they found the accelerator invaluable. "Especially something that's scalable to the level SimpleScript is, it can be difficult to figure out what to do next," Bucklew shared. "We needed some counsel on how to get from point A to point B. From working with CoBuilders, we will be ready to get funding."

Innovate Mississippi, funded by a mix of public and private money, invests $25,000 into each participating company. This year's cohort is refining their products for a pitch day on November 11, where they aim to raise over $100,000 each from investors. Unlike traditional small businesses, these startups focus on rapid growth and capturing large market shares, often relying on angel investors in their early stages.

Bridging Gaps in a Nascent Ecosystem

Tony Jeff, CEO and president of Innovate Mississippi, emphasizes the importance of connecting entrepreneurs with resources across the state. "With 3 million people in Mississippi, we've gotta do a lot of work just to find the business that needs the mentor three hours away, that needs the accounting person," Jeff explained. "We connect those dots." Without such support, founders might seek opportunities elsewhere, exacerbating the state's brain drain.

Jeff notes that a polished pitch isn't enough; founders must research competitors and gather user feedback. For instance, Leta Palmiter's company, Vertical Take-Off Reading, has undergone three pilot rounds and serves over 130 students. Developed with co-founder Ben Stasa, this software measures oral reading skills to aid students, particularly those with dyslexia. "We know that it's doing a great job measuring that accuracy at that sound level, and that kind of data will drive instruction," Palmiter said, highlighting how the tool complements teaching without replacing it.

Universities and Untapped Potential

Mississippi's colleges are actively supporting the startup pipeline through research funding and idea incubation. Innovate collaborates with universities to host pitch competitions and connect with founders. Ricky Romanek, founder of ClaimTra, a healthcare analytics tool for insurance claim recovery, acknowledged this: "There's a lot of resources that the schools and universities help support tech entrepreneurs."

Romanek believes Mississippi holds huge untapped startup potential. "I think there's a huge startup potential in Mississippi that's untapped. There's a lot of great ideas. I don't think they're aware of all the resources that are available," he remarked. Jeff echoes this, seeing the tech sector as a key to retaining talent and addressing job shortages, noting that students often consider leaving due to limited opportunities.

The Path Forward

Identifying the right companies for the accelerator is crucial—they must be innovative, early-stage, and high-growth. "It is very obvious we have more money chasing deals than we have deals. So we've got to get everything we can to make every startup qualified for that money," Jeff stated. Innovate's role in nurturing home-grown businesses and attracting new ventures could redefine Mississippi's economic landscape, turning nascent ideas into thriving enterprises.