Charlottesville, due in large part to the University community, was recently recognized as one of the fastest-growing venture capital ecosystems in the country by the National Venture Capital Association.
According to the National Venture Capital Association, Charlottesville has experienced an impressive 55.2 percent growth in its entrepreneurial ecosystem. Nine companies located in Charlottesville received a grand total of about $28 million in venture funding last year, an exponential increase from the $250,000 made by just one company five years ago.
The University seems to be a major contributor to the sudden growth. Of the top nine companies receiving investments, six have worked directly with the University Licensing & Ventures Group. These companies include PsiKick, Neoantigenics, TearSolutions and iTi Health Inc., among others.
Erik Breuhaus, a 2014 Darden graduate and business manager of PsiKick, said he believes the partnership with the Licensing & Ventures Group is a positive one.
“They are big supporters of our work and what we’re doing,” Breuhaus said. “They support our work because they have a vested interest in seeing PsiKick grow and achieve big things out in the commercial world.”
Sean D. Carr, executive director of the Batten Institute for Entrepreneurship and Innovation, said he credits the growth of businesses and startups in Charlottesville to the “rich intellectual environment,” as well as the talent, ideas and quality of life the community offers.
“Universities can often have a powerful catalytic effect on the development of the entrepreneurial ecosystem,” Carr said. “Entrepreneurship is inherently a local phenomenon.”
Another asset Charlottesville boasts is the student body, Breuhaus said.
“I think we benefit by being in Charlottesville to a certain degree because we are able to bring in very talented people from the University,” Breuhaus said.
Carr said a mental and significant cultural “shift” has taken place with the students of the University.
“A part of it has to do with the general culture,” Carr said. “More and more people are recognizing that creating a startup is not an unreachable goal. They are attracted to it, they see it as a career path.”
While Charlottesville is currently seeing exciting growth, Assistant Commerce Prof. David Touve said he believes this is just the beginning of Charlottesville’s economic entrepreneurial success.
“While the last five years reflect a great deal of growth in venture funding for startups located in and around Charlottesville, the total capital raised in 2015 — as measured by the NVCA — suggests there is even more upside remaining,” Touve said in an email statement. “This potential upside could be a very good thing for the University, the city and the region.
Correction: A previous version of this article misquoted Breuhaus as saying the Licensing & Ventures Group has "invested interest in seeing PsiKick grow." He said it has " a vested interest."
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