Maine Venture Fund, a state-sponsored venture capital fund, has committed to invest up to $750,000 over the next three years in startups that graduate from the Roux Institute Techstars Accelerator.
The Roux Institute Techstars Accelerator, launched in 2021 as a partnership between Techstars and the Roux Institute at Northeastern University, is an immersive entrepreneurship program that helps startup founders build and scale their technology businesses. The accelerator, which is currently accepting applications for its next class, works with startups developing products that will revolutionize how we live and work, including in the fields of artificial intelligence, life sciences and health, and data and analytics.
As part of the agreement, Maine Venture Fund will investment up to $250,000 a year for the next three years in startups that graduate from the accelerator. Investments would be made at the discretion of MVF, which has invested more than $27 million in Maine companies since its formation in 1997. Because MVF is a quasi-state organization, only Maine-based startups or startups that have pledged to relocate to Maine after graduating from the accelerator are eligible for investment.
“We see The Roux Institute as a catalyst for economic activity and job growth here in Maine,” Joe Powers, managing director of Maine Venture Fund, said in a statement. “The Roux Institute Techstars Accelerator is really a boot camp that gives companies a much better chance at success. To the extent that Maine Venture Fund can be a part of helping those companies to get rooted here in Maine, and to grow their companies here, that’s super important to us, and it represents a big opportunity for the state.”
The Roux Institute Techstars Accelerator ran its first accelerator last fall, which included 10 early-stage companies, which culminated with a Demo Day in early December. One of the accelerator’s companies—Omnic Data—was already based in Maine, while another three decided to relocate to Maine following the program.
“This commitment from Maine Venture Fund is a vote of confidence in our accelerator and the caliber of startups we graduate,” Lars Perkins, the accelerator’s managing director, told MSI. “It could also serve as another draw for founders considering whether to apply for our next program.”
The announcement is part of a larger partnership between the venture fund and The Roux Institute at Northeastern University that will also see MVF co-locate its team—Managing Director Joe Powers and Investment Manager Nina Scheepers—at the Roux’s Portland campus. The closer working relationship will allow MVF to work more closely with the top-tier startups going through the Techstars accelerator and the Roux’s other entrepreneurship programs, while also connecting companies in the MVF portfolio to the institute’s cutting-edge research and classroom opportunities. The venture fund also expects to invest in companies that graduate from the institute’s other startup programs, including its Founders Residency Program, though that would be outside the initial $750,000 commitment.
“We are excited to have Maine Venture Fund supporting the institute’s mission of growing the Maine economy and startup ecosystem,” says Chris Wolfel, director of entrepreneurship at The Roux Institute. “They join a growing list of supporters, including Maine Technology Institute, Bernstein Shur, and TDF Ventures who make our work possible.”
It’s exceedingly rare for an investment fund to commit to providing capital in advance, says Benjamin Chesler, the Roux Institute’s associate director of entrepreneurship, who helped create the partnership with MVF.
“It signals a confidence in The Roux Institute and Techstars portfolio companies that MVF is willing to allocate money specifically for these startups,” says Chesler, who founded Imperfect Foods—a large online grocery store committed to reducing food waste—prior to joining The Roux Institute last year. “It’s a strong show of force that two Maine-based institutions are coming together to show how we can support the ecosystem and network to make these companies successful here in Maine. And it’s appealing to prospective companies to know that they’ll have a greater chance of getting funding if they apply to and are accepted into the accelerator program.”
