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Accelerator program looks to jump-start health care innovation

There is nothing that requires participating companies in the HubX-Life Sciences accelerator to remain in Arkansas after completing the program.

This fact seems even more true for the applicants who hail from Atlanta, Boston, Chicago, Dallas, San Francisco and Canada. State pride won't tug at their heartstrings like it might for Arkansas-based participants.

Still, Arkansas Regional Innovation Hub director and Fund for Arkansas' Future founder Jeff Stinson likes the state's chances. And he views outside interest in the accelerator as promising for the state's future when it comes to health care innovation.

HubX-Life Sciences, run through the Arkansas Regional Innovation Hub, is designed to help health care-related start-ups gain footing. Between five and 10 companies will be selected to participate in the 13-week program with the promise of between $25,000 and $50,000 in capital to start.

Think of it as similar to an ARK Challenge for health care innovators. Stinson points to the upfront money and partnerships with Baptist Health and Arkansas Blue Cross and Blue Shield as major selling points for applicants. He also views the opportunity to work with the two health care heavyweights as incentive for companies to continue their work in Arkansas once the accelerator ends.

"Staying is up to the company," Stinson said. "We could require it, but that would limit the applications we received. What we feel is a better bet for us is to demonstrate our value as a state once they are here. Once they see the benefit of staying here and working with our hospitals and insurance companies and our professional service providers, all Arkansas has to offer, we think they'll choose to be here in the end."

Mentors in the program include executives from both Baptist Health and Arkansas Blue Cross and Blue Shield. HubX also has gained commitments to help from digital marketing firm Team SI and Cranford Co. PPGMR Law also is offering the expertise of Jamie Fugitt, an attorney who specializes in entrepreneurs, emerging companies and technology startups.

Companies focused on digital health care innovations -- IT platforms or software, for example -- seem to be the most interested in the accelerator. Diagnostics and pharmaceutical companies often require too much testing and approval. Millions are needed to fund those sorts of ventures and they demand patient investors.

Applications are being accepted through Feb. 15. The accelerator begins April 4.

Stinson said he is "pretty confident" that the state's six angel investment funds -- companies focused on funding entrepreneurs -- will be evaluating opportunities among HubX participants. Those funds include Stinson's own Fund For Arkansas' Future, Gravity Ventures, Tonic Fund, Hayseed Capital, Torch Fund and CadronCreek Capital.

Baptist Health and Arkansas Blue Cross have agreed to supplying the top emerging company with funding once the accelerator ends. Those companies also have meaningful networks of connections in Arkansas and across the country that could help a promising startup see if its ideas work at scale.

As someone who was at the forefront of startup culture in Arkansas, Stinson sees the involvement of Baptist Health and Blue Cross Blue Shield as a positive not just for HubX, but for the future of innovation in Arkansas.

"If you look at the last 11 years, which is really when our tech and entrepreneurial community started, all of our entrepreneurial development in the state has pretty much been bootstrapped," Stinson said. "Entrepreneurs and investors have been pulling ourselves together. We've never really had really large institutional support. This is the first time organizations the size of Baptist and Blue Cross are putting their resources behind entrepreneurial development. I think you're going to see that as a trend in Arkansas. It's going to make a huge difference."

If you have a tip, call Chris Bahn at (479) 365-2972 or email him at

cbahn@nwaonline.com

SundayMonday Business on 01/24/2016

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