For Slater Technology Fund's managing director Thorne Sparkman, who's been with the firm since 2000, his job is pretty simple.
"I'm the guy who finds investments and negotiates them and makes them," he said. "It's very small company; I'm kind of it."
He's right. Slater may not be large when considering its internal size, but that hasn't kept the state-backed venture capital fund from packing a significant punch. Since 1997, it's made around 42 investments with four exits, primarily in companies within the life sciences, information technology, energy and environmental sectors. It has more than 40 startups and companies in its portfolio.
"We like to be the first phone call for entrepreneurs."
"The real focus is on game-changing technologies and the entrepreneurs who drive these companies," Sparkman said. "We’re trying to solve the world’s big problems, and that requires great tech as the basis of great companies that become great investments for people. At the same time, we’re trying to create jobs for Rhode Island people; that cross-cuts everything we do. Great tech happens here in Rhode Island."
And its portfolio is evidence of that. It's a veritable who's-who of popular Ocean State startups, from SquadLocker to Medley Genomics, VoltServer and beyond.
Slater is a 501(c) corporation, and it doesn't have owners or shareholders. The money from the fund, which eventually goes to startups, comes from two sources: the state of Rhode Island and the federal government via the U.S. Treasury.
"We use it exclusively for investment," Sparkman said. "Every dollar we get goes into a company, and then we fund ourselves based on success. If we have a successful exit from a company, we take that money and instead of distributing to investors [we share it with] Rhode Island companies and also keep the lights on."
Sparkman added that there isn't a typical investment size. $50,000 is the largest investment that the fund has made recently, but has historically participated in rounds that were in the millions.
But money isn't just the only thing that Slater provides. Inspiration and wisdom are also among its virtues.
Consider its recent managing director, Richard Horan, who worked with the fund for 15 years, only to branch out and establish his own venture development firm.
Horan's move is the kind of "rising tides lift all boats" thing that helps everyone in the Rhode Island ecosystem, Sparkman explained — especially since there isn't an overabundance of funding opportunities for companies in the Ocean State.
But how do interested companies get the attention of those entities that do provide financial assistance?
Be bold, Sparkman emphasized.
"I would encourage any of your readers to email me or give me a call," he said. "We like to be the first phone call for entrepreneurs."
Startup visions don't have to be perfect, either.
"I like to see [their plans] in rough draft format," he added. "We’re not too worried if there’s misspellings; I'd rather interact with as many entrepreneurs as I possibly can."
