Richmond VA-based Lighthouse Labs hosted a “Startup Journey” forum last week, featuring medical services innovator Iggbo. It also touched the sensitive issue of Silicon Valley.

Lighthouse Labs Talks with Iggbo

Lighthouse Director Todd Nuckols moderated the event at the University of Richmond. Headlining the evening were two of the Richmond-based founders of Iggbo, whose mission is to streamline the delivery of blood samples to medical laboratories.

Dubbed the “Uber of phlebotomy,” Iggbo launched in early 2015 and scaled up fast. It raised a few million dollars, created a virtual team of blood-draw professionals and set a rate of appointment compliance that far exceeds industry norms. Iggbo now operates in over 120 US cities, with a workforce of over 6,000 phlebotomists.

Meanwhile, Iggbo is shifting its attention away from Richmond. They cut a deal with a Nashville-based venture capital (VC) firm. They’ve also made successful pitches in Silicon Valley. In return, investors have asked, “When are you moving out here?” It could happen.

Iggbo may be rooting for its home town. “We don’t want [AOL founder] Steve Case to ever say that Richmond is a ‘flyover city,’” said Shaival Kapadia, Iggbo co-founder and chief medical officer. But once you’ve experienced Silicon Valley’s legendary pay-it-forward culture, it’s hard to go back. While praising Richmond’s talent, Iggbo chides it for not being collaborative enough.

Silicon Valley and RVA

Given sufficient momentum, startups do well to tap Silicon Valley’s funds and broader talent pool. But for early-stage companies, regional connections are still critical. Take the three companies that gave “lightning talks” at last week’s event. (A mentorship service, homeowner website and coffee manufacturer.) They all credited local support.

For its part, Richmond has a range of assets. In a private conversation, one successful founder begged to differ with Iggbo, insisting that Richmonders do help each other.

There’s Lighthouse Labs, for instance. It offers seed capital, mentoring, launch days, co-working, and other support. RVA Works, aligned with the city’s Economic Development Authority, also promotes business formation. Beyond the U of R, Richmond boasts Virginia Commonwealth University. (Iggbo CEO Nuno Valentine matriculated at VCU, and Kapadia did his medical residency there). New Dominion Angels and New Richmond Ventures provide financial backing and counsel. With its outdoorsy ethos, craft breweries and happy vibe, Richmond offers other intangibles.

Lighthouse Director Nuckles downplayed the idea that Richmond is in competition with the Valley. “We are in an economy of abundance and need to do our part to emphasize our distinctive strengths in propelling founders forward,” he said in a follow-up interview. “The rest will take care of itself.”

Two-way Street

A key point is that alternatives exist. That’s the theme of Tim Sprinkle’s book Screw the Valley, which I reviewed here a few months ago. Iggbo itself proves that you don’t have to start your journey in Silicon Valley. You don’t have to end your journey there, either. See Sprinkle’s book for a number of “exiles.” Victor Huang is a more recent example. In that case, Silicon Valley’s loss is Kansas City’s gain – and a win for the Kauffman Foundation.