innovate arkansas

The list, available here, is a round-up of the largest sources of private equity within the state, including firms based outside Arkansas. In fact, only three of the eight firms are based within “The Natural State.”

Last year’s list included Venture Capital Investors of Little Rock, which closed one transaction in 2004 and was made up of about 40 accredited angel investors, but VCI no longer exists. The Fund for Arkansas’ Future, also of Little Rock, has filled the role of VCI. Jeff Stinson, the FAF’s managing director, said about half of VCI’s investors found a home at FAF.

FAF partnered with the Alpha Fund of Fayetteville in 2005 and invested in four Fayetteville-based Virtual Incubation Corp. client companies. FAF invested about $650,000, while Alpha invested about $300,000.

Total capitalization of the firms on the list is about $694 million. Some of the out-of-state firms listed did not make investments.

Joe Hays, managing director of Diamond State Ventures, said the fund’s six transactions in 2005 were worth about $5.9 million. That fund’s investment timeline officially closed on Dec. 31, he said, but DSV will continue to assist the 24 companies it has invested in. About half of the companies DSV has in its portfolio are in Arkansas, Hays said.