As we near the end of 2019, it’s a good time to look back at the Maine startup stories that attracted the most attention during the year. Digging into MSI’s archives, the most-read posts include articles about new financings, founders reflecting on failure, and policy changes that could impact the local innovation ecosystem.
MSI published 67 articles in 2019. Here are the 15 that attracted the most attention (measured by pageviews) from MSI readers.
15. 90-year-old Portland company raises $670K in VC to pursue new SaaS product
Walch Education, a Portland-based publisher of educational materials, raised $670,000 earlier this year as it develops a software platform called Curriculum Engine, which provides schools with a DIY option for curriculum development. It was the first outside capital the company had raised in its 90-year history.
14. Unofficial: Entirety of Seed Capital Tax Credit claimed on first business day of the year
It may have been unofficial when I first reported it on Jan. 2, 2019, but it was soon confirmed that the entirety of the Maine Seed Capital Tax Credit had been claimed on the first business day of the year. Founders were lined up outside the door of the Finance Authority of Maine the night before to ensure they got their paperwork in and share of the credits. The tax credit, capped at $5 million annually, has become incredibly popular the last few years. It offers investors in eligible early-stage Maine companies a chance to recoup 50% of their investment (up to $500,000) over the course of at least four years in the form of credits that reduce their Maine tax liability (or, in the case of out-of-state VC funds without Maine tax liability, in the form of cash).
13. How a local startup landed a coveted collaboration with iconic outdoor retailer L.L.Bean
I wrote this article to shed some light on how local startup Flowfold landed a co-branding coup in its collaboration with L.L.Bean on a limited edition version of the iconic Bean Boot. James Morin, COO of Flowfold, told MSI that it was a “monumental moment” for the company and a result of a lot of work and persistence.
12. REDD refreshes brand, raises $2.2M in new funding
REDD, the venture-backed energy bar company in Brunswick, raised $2.2 million in funding and unveiled a new brand and packaging this year.
11. Ocean’s Balance, KinoTek win $125k on Greenlight Maine
The TV show Greenlight Maine, which features entrepreneurs competing against one another to win over a panel of judges with their business pitch, aired its 2019 finale in which Ocean’s Balance, the Biddeford-based company that produces and sells edible seaweed products, won the $100,000 top prize. KinoTek, a Portland-based startup that uses virtual reality and motion capture technology to create what it calls “human performance software,” won the inaugural collegiate championship and its $25,000 top prize.
10. Portland founder sells one company, turns attention to startup
In March 2018, Jamie Nonni sold his company Nationwide Payment Solutions to EVO Payments Inc., but agreed to stay on to help with the transition. On Feb 25, 2019, he left Nationwide and the next day showed up to lead his startup, Municipay, full-time. Municipay, which provides payment technology solutions to municipal governments, served (as of the article’s publication date in April) roughly 1,400 municipalities throughout the country, including the City of Portland. It posted revenue of $4.8 million in 2018, results good enough to place the company on the Inc. 5,000 list of fastest growing private companies for the past four years.
9. Dream Local Digital raises $725k, names chief revenue officer to fuel growth
Dream Local Digital, a digital marketing agency in Rockland, raised $725,000 from investors including CEI Ventures and Maine Venture Fund, and hired a chief revenue officer to help grow its business.
8. Top Gun accelerator selects a record 47 companies for 2019 cohort
In January 2019, the Maine Center for Entrepreneurs announced that it had selected 47 companies to participate in its 2019 Top Gun startup-training program—its largest class ever.
7. Lawsuit with former CTO sinks Chimani’s equity crowdfunding campaign
Maine Startups Insider broke the news in August that Chimani, a Yarmouth-based company with a mobile app-based travel guide for U.S. national parks, had its equity crowdfunding campaign cancelled after a judge ruled against the company in a lawsuit with a firm controlled by Chimani’s former chief technology officer. More than 400 individual investors had committed to invest nearly $86,000 in Chimani before Republic, the equity-crowdfunding platform hosting Chimani’s campaign, pulled the plug on the campaign only days before it was scheduled to end.
6. Reflecting on Failure: Why Rapport, the sustainability SaaS startup that won Rise of the Rest, shut down
This was not a happy story to write, but it became one of my favorites of the year because of how open John Rooks was about his experience through the ups, downs, and eventual closure of his startup Rapport. The startup had gained prominence in 2015 after it won $100,000 in a pitch competition judged by AOL Co-Founder Steve Case during his Rise of the Rest tour’s stop in Portland. Rooks opened up about the difficulties they faced in scaling the company, the unpleasant aspects of asking for money from investors, and why shutting down the company was the right move.
5. MyHealthMath Emerges from Stealth Mode to Demystify Health Insurance for Employees
Maine Startups Insider’s 2019 Startups to Watch profile of MyHealthMath rounds out the top 5. The company, which had operated relatively under the radar until this feature story authored by Caitlin Gilmet, has set the ambitious goal of demystifying the process of selecting a health insurance plan. The company has already begun gaining traction. CEO and Founder Bob Watterson projected $1 million in sales this year, about 2x growth over its 2018 numbers.
4. Covetrus plans to bring 1,200 jobs to Portland, debuts on the Nasdaq
The announcement of the deal that would merge Vets First Choice with Henry Schein Animal Health, bringing the merged entity public, was the most read story of 2018, so it’s no surprise that the article about the consummation of that deal and subsequent listing on the Nasdaq would be one of the most-read stories of 2019.
3. Startup Maine sending eight startups to TechCrunch’s Disrupt SF in October
In August, Maine Startups Insider broke the news that Startup Maine had organized a group of eight Maine startups to attend TechCrunch’s Disrupt conference, which took place in October in San Francisco. The eight startups—Defendify, Friday, Wallit, VETRO FIberMap, Driftspace, NearPeer, KinoTek, and HighByte—were the first Maine startups to be represented at the conference. MSI actually produced a mini-documentary called “Crunch Time” in collaboration with Startup Maine about the experiences of the startup founders who traveled to San Francisco for the conference. (You can watch the film on YouTube.)
2. Ocean Approved raises $2M on plans to reinvent seaweed for a retail consumer
Under the leadership of CEO Briana Warner, Ocean Approved has successfully transitioned from an aquaculture business into solely a processor and seller of products, while leaving the farming to fishermen and aquaculturists along the Maine coast. This financing was needed to purchase additional processing equipment to help it scale production, as well as for product development, marketing and sales, as it enters the retail market with a new line of kelp products.
And the most-read story of the year…
1. New Maine noncompete law is a game changer for both employers and employees
The most-read story of 2019 wasn’t about some flashy new startup or big-money financing, it was about policy and its effects on Maine’s innovation ecosystem. In June 2019, Maine significantly changed its laws governing noncompete agreements with the goal of making it harder for employers to enforce these contracts and, hopefully, allowing talent to switch jobs more freely and more often. Local business attorney Adam Nyhan broke down the changes in the law for MSI’s readers and provided some key takeaways.
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