Capital Scan Identifies Where Arkansas Startups Are Growing and Where Funding Gaps Remain

Venture capital investment in Arkansas startups remained steady in 2024, according to the newly released Arkansas Capital Scan. The report highlights continued concentration of investment activity in Northwest Arkansas and outlines opportunities to strengthen funding for young companies and new business formation across the state.

The 2024 data reflect a mixed but resilient landscape. Early equity rounds declined meaningfully, yet founders advanced by drawing on a broader mix of funding sources. Arkansas sustained a four-year pattern of steady venture activity, raising nearly $260 million across 18 deals. Northwest Arkansas captured 92% of that investment, reflecting strong confidence in the region’s high-growth sectors.

Now in its fifth year, the Capital Scan tracks financial resources directed to Arkansas startup companies. Developed in partnership with the University of Arkansas Office of Entrepreneurship and Innovation (OEI), a division of the Sam M. Walton College of Business, with support from the Walton Family Foundation, the report covers angel and venture investment, crowdfunding and nondilutive federal grants.

Additional key findings include:

• Crowdfunding increased 37%, reaching founders in seven regions
• Nondilutive federal grants rose 15% to $16.9 million
• Angel and seed investments totaled just under $8 million, marking a meaningful decline from 2023

The decline in angel and seed investments underscores an opportunity to strengthen the front end of Arkansas’ startup pipeline. That insight has guided recent efforts to expand support for emerging companies across the state.

In 2024, the Northwest Arkansas Council launched VC Immersions to connect young companies with venture firms through curated meetings. Strong engagement informed a statewide expansion in 2025. In partnership with the Arkansas Economic Development Commission, the council evolved the model into Onward FX, a two-day founder-funder exchange designed to increase access to capital, mentorship and market opportunities across Arkansas.

Serafina Lalany, executive director of StartupNWA at the Northwest Arkansas Council, said the data show meaningful progress alongside persistent challenges in fueling young companies.

“The report shows an emerging ecosystem working through a tough year for early investment,” Lalany said. “The path forward is clear: strengthen capital access where it matters most. Steady venture activity highlights the growth-stage opportunity emerging in Arkansas, and programs like Onward FX help founders gain momentum at the earliest stages.”

Further solutions will come from updates to Arkansas’ securities law taking effect in 2026. Act 236 modernizes equity crowdfunding by increasing the amount companies may raise, widening local investor participation by simplifying compliance requirements.

Entrepreneurship Support Organizations (ESOs), including the Venture Center and university innovation programs, complement these efforts by helping founders build skills, validate concepts and prepare for investment.

In a perspective piece included in Capital Scan 2024, Chad Brown, co-founder and managing partner of the Venture Center Arkansas Fund, outlines opportunities emerging in several innovation-driven sectors.

 “Arkansas’ entrepreneurial landscape continues to evolve with promising activity across multiple industries,” Brown said. “Expanding access to early capital will help convert this momentum into lasting impact.”

“We’re proud to partner with the Northwest Arkansas Council to bring the Arkansas Capital Scan to founders, investors and policymakers,” said Phil Shellhammer, executive director of the U of A Office of Entrepreneurship and Innovation. “The data show where capital flows are strongest, where new opportunities are emerging and how we can guide entrepreneurs toward the resources that help them grow.”

To access the full Arkansas Capital Scan 2024, please visit this link.

About the Northwest Arkansas Council: Founded in 1990 by Sam Walton, J.B. Hunt, Don Tyson and several other business leaders, the Northwest Arkansas Council serves as a regional convener for economic and community initiatives. The council excels at identifying challenges and championing solutions to enhance the prosperity of the Northwest Arkansas region. Key initiatives include work to advance quality of life, attract talent, improve the region's workforce, create job opportunities, upgrade infrastructure and keep up with the region's impressive growth. For more information, visit www.nwacouncil.org. 

About the U of A Office of Entrepreneurship and Innovation: The Office of Entrepreneurship and Innovation, a division of the Sam M. Walton College of Business, creates and curates innovation and entrepreneurship experiences for students across all disciplines. Through the Brewer Family Entrepreneurship Hub, McMillon Innovation Studio, Startup Village, and Greenhouse at the Bentonville Collaborative, the Office of Entrepreneurship and Innovation provides free workshops and programs — including social and corporate innovation design teams, venture internships, competitions and startup coaching. OEI also offers on-demand support for students who will be innovators within existing organizations and entrepreneurs who start something new. 

About the Sam M. Walton College of Business: Founded in 1926, the Sam M. Walton College of Business stands as one of the largest colleges at the University of Arkansas, serving over 10,300 students across undergraduate, master's and doctoral programs. The college holds AACSB accreditation and consistently ranks among the top business schools in the United States. Walton College ranks 25th for its undergraduate business program among public colleges in the U.S. News & World Report's 2025 national rankings. Its undergraduate supply chain management program is recognized as the top program in North America by Gartner. In 2025, The Princeton Review included Walton's M.B.A. program in its Best Business Schools list for On-Campus M.B.A. Programs.