A pair of Maui-based entrepreneurs Wednesday announced the creation of a $10 million investment fund to help Hawaii startup companies in the early stages of development.
The fund will play a key role in Hawaii’s effort to build a more robust startup community and diversify the state’s economy, said Karl Fooks, president of the Hawaii Strategic Development Corp., a state agency that partners with the private sector to provide investment capital to businesses.
The $10 million will be managed by mbloom, a technology fund founded and run by Nick Bicanic and Arben Kryeziu of Kahului. The fund was launched with $5 million from private investors and $5 million from HSDC.
The fund will provide capital to startups during a critical period of their development as they refine their products or services and begin creating go-to-market strategies, Bicanic told investors and entrepreneurs gathered for Hawaii’s annual Venture Capital Summit Wednesday at the Sheraton Waikiki.
"Getting initial funding isn’t a problem for startups. Getting follow-up funding is," Bicanic said. "We’re looking to fill that hole. We want to act as a bridge to that next step in the development," he said.
Fooks said the mbloom fund will help both entrepreneurs and investment capital from leaving the state.
"We have a lot of smart people in Hawaii. We have great opportunities for them to develop ideas. But they need capital to grow their businesses," Fooks said.
"Unless we have these kinds of resources here, all the good companies that can get investors are going to find those investors outside of Hawaii. And if there is nothing to invest in in Hawaii, our own money is going to leave," he said. "We’re trying to create that ecosystem so that you don’t have to go to the mainland."
Don Dodge, a top Google executive who spoke at the conference, said there is no reason Hawaii can’t become a major center for innovation and entrepreneurship.
"The Internet has made it possible to do business from anywhere in the world. Any startup on day one is a global business. Anyone can access you from anywhere in the world," said Dodge, who carries the title of "developer advocate" at Google. Dodge helps company developers build new applications on Google platforms. He also serves as a special adviser to Google Ventures, the venture capital investment arm of the company.
"Building a startup ecosystem … starts with the basic building blocks and I think Hawaii has several of those building blocks," he said.
Another key to making a startup community work is having two or three "world-class leaders," something Hawaii has, according to Dodge. "You need someone like Steve Case or Pierre Omidyar who has done really well to come here and say I’m going to reinvest, I’m gong to make it happen, and they will attract all of those talented people."
