Delaware's Entrepreneurial Mindset

Positioning the First State for innovation and economic growth

BY SARAH MAILLOUX SATTERFIELD AND NOAH OLSON

WITH AN INTEGRATED, educated, and resilient community of entrepreneurs and dreamers focusing on growth and innovation, it’s no surprise that Delaware is one of WalletHub’s 10 Most Innovative States. Delaware’s business ecosystem shares the belief that connections take us all farther together and actively works to build a statewide culture of innovation. This collective entrepreneurial mindset is a key factor in Delaware’s status as an increasingly attractive destination for startups and other businesses looking to launch or expand their operations.

With a population of just over a million, Delaware’s small size enables the kinds of connections that facilitate access—to leaders, to customers, and to talent. Delaware’s public and private sector leaders are accessible, engaged and, as Adesis founder Andrew Cottone says, “move at the speed of the entrepreneur.” The state’s commutable location between the political arena of Washington, D.C., and the commerce capital of New York extends such access and sits at the center of the largest U.S. consumer market—with more than 50 million people within 250 miles.

Contributing to Delaware’s deep STEM talent pool are the University of Delaware, whose undergraduate chemical engineering program is ranked fifth nationwide by U.S. News & World Report, and Delaware State University, which is recognized among U.S. News & World Report’s Most Innovative Schools. Delaware’s location also allows residents of adjacent Pennsylvania, New Jersey, and Maryland to deepen that pool further with a convenient commute.

More than 98% of businesses in Delaware are small businesses, and Delaware boasts a strong network of partner organizations that offer training, technical assistance, funding opportunities and other support to help increase skill sets, business savvy and resources among its innovators and entrepreneurs. For example, the Delaware Small Business Development Center (SBDC), Delaware Prosperity Partnership, and the Delaware Division of Small Business provide no-cost, end-to-end services while showcasing the opportunities Delaware offers to launching or relocating businesses. The Delaware Sustainable Chemistry Association and the Delaware BioScience Association promote industry initiatives and create communities where businesses learn from their peers.

Versogen and Compact Membrane Systems are two scientific technology companies whose growth have been facilitated by their launch and location in Delaware. Contributing to their success have been state government’s support of innovation, the strong community of Delaware companies and individuals in their field, and the entrepreneurial mindset for which Delaware is known.

Since its start at the University of Delaware in 2012, Versogen has worked with the Delaware SBDC and taken advantage of UD’s Horn Entrepreneurship programming; relocated to the Delaware Innovation Space incubator; earned more than $5 million in grants from programs like the BIRD Project and the Shell GameChanger Accelerator; and raised $14.5 million in Series A funding. In 2022, the green energy startup targeting deep decarbonization announced a $4.8 million expansion— supported by Delaware Strategic Fund grants—that includes moving operations to larger, upgraded facilities at FMC Stine Research Center.

“Versogen,” says co-founder Yushan Yan, “has been strongly supported by the State of Delaware directly or indirectly from its inception.”

Compact Membrane Systems (CMS) specializes in the research and development of fluoropolymer membranes and thin films. Founded in 1993 by Stuart Nemser as spinout research from DuPont, the company currently offers products such as nitrogen-enriched air, oxygen-enriched air, and VOC-air separation. Since 2015, CMS has consulted the Delaware SBDC for advice and tapped into other Delaware small business resources. Earlier this year, CMS raised $16.5 million in Series A funding.

“Delaware is the best place on Earth to start a chemtech company,” says CMS CEO Erica Nemser. “I’m not sure we’d get the same attention somewhere else.”

Sarah Mailloux Satterfield is associate state director of the Delaware Small Business Development Center. Noah Olson is director of innovation at the Delaware Prosperity Partnership.