Don’t forget start-up ecosystem when moving NM forward

BY DREW TULCHIN AND DAVID PEREZ NEW MEXICO ANGELS

Small businesses are the backbone of New Mexico. In fact, according to the Small Business Administration, New Mexico has 162,000 small businesses, most of them focused on recreation and tourism.

One answer to moving New Mexico forward, which is rarely addressed by our elected officials, is supporting existing and investing in more start-up businesses. New Mexico is unique with its abundance of knowledge and technology. We boast three national labs here – Sandia, Los Alamos, and the Air Force Research Laboratory, as well as our excellent universities and colleges.

Many companies have and do make it here, continuing to generate revenue and jobs — and taxes.

Neighboring states including Utah, Colorado and Texas have invested in start-ups in a big way. To grow our start-up and high growth business economy, it will take capital investment, enabling legislation and a commitment to grow the state’s human talent pool.

The New Mexico Economic Development Department has already identified the following growth areas for New Mexico’s future — aerospace, biosciences, cybersecurity, intelligent manufacturing, sustainable and value-added agriculture, and sustainable and green energy.

These sectors are ideal for launching start-up and fostering high growth enterprises. New Mexico Angels, for more than 20 years, has invested in and is actively supporting companies in all these sectors.

New Mexico has many positive stories to tell the world about why we are a unique and attractive location for startup entrepreneurs. We believe the state needs to invest in marketing New Mexico as a compelling destination for venture ready entrepreneurs, especially early- stage businesses. The New Mexico True campaign to attract tourists has been very successful over the past decade. Let’s use that as a model to create an economic development focused campaign to recruit companies in the sectors already targeted for growth. In addition, New Mexico Angels is working with legislators to develop incentive packages aimed at early-stage companies to relocate to New Mexico. We have a successful example to emulate in the film tax credit program that has attracted many TV and film productions worth tens of millions of dollars.

A package including tax rebates, investment capital, and technical assistance will go a long way to not only draw companies, but also keep them here for the long term.

New Mexico Angels is an organization that invests and supports the start-up and high growth business ecosystem in our state. Some current, nationally award-winning and high growth companies include UbiQD, Parting Stone, Bosque Brewing, Flow Aluminum, Electric Playhouse, and Build with Robots, to name a few.

New Mexico Angels as a membership network has helped these organizations with not only capital, but mentorship and relationships, and it’s paying off.

There are many bright spots from high growth New Mexico companies that are based here and stay here.

UbiQD recently received recognition at the SXSW (South by Southwest) festival, nearly $1 million from the New Mexico Economic Development Department and another $175,000 grant from the U.S. Department of Agriculture.

Parting Stone was featured on “Shark Tank,” doubled its manufacturing space in Santa Fe and has now expanded internationally after raising $1 million from an international investor.

Based on investments and initial success in Albuquerque, Electric Playhouse has expanded to Las Vegas, Nevada. And these stories and so many more happen every day.

As the business community, investment community and elected officials look for ways to move New Mexico forward, remember the start-up ecosystem. Let’s all work together to see our small businesses thrive and create new opportunities that will benefit all New Mexicans.

Drew Tulchin is president of New Mexico Angels. David Perez is board chair of New Mexico Angels.