Eric McDonald was 23 and fresh out of college when he started writing code for a software program to help health care providers better manage work flow in their clinics.
Fifteen years later, McDonald’s software is used in 700 urgent care centers across the country. What started in his basement is now one of Sioux Falls’ fastest-growing companies, employing about 170 people and planning to nearly double in size soon.
McDonald’s DocuTap is the kind of success story South Dakota would like to tell more often: creative entrepreneurs turning ideas into successful startup companies that have the potential to become high-growth businesses.
It’s also a type of entrepreneurship – driven by technology and innovation – that hasn’t been well supported by the state’s existing incentive programs, South Dakota’s top economic development official said.
“We’ve all started to realize this is an area that we’re lacking in the state,” said Pat Costello, the governor’s economic development commissioner.
That’s led to an ongoing conversation in the Governor’s Office of Economic Development about how the administration can broaden the state’s pool of venture capital, as well as more grassroots efforts to bolster the startup scene. Both are making plans this year that could change the landscape for South Dakota entrepreneurs.
As economic development officials consider ways to boost the amount of venture capital available in the state, angel investors with cash in the bank are trying to get the word out that they want to invest in South Dakota ideas and entrepreneurs. The Brookings-based Enterprise Institute on Feb. 3 announced the launch of its seventh South Dakota angel fund.