Investing in Maine’s Rural-Tech Revolution

In the world of investments, sometimes serendipity plays a hand that surprises even the most seasoned financiers. Take, for example, the case of a fledgling fund that set its sights on boosting rural economic development in the U.S. What are the odds that their first two investments would turn out to be Maine-based enterprises utilizing technologies with a proven track record in Europe but relatively unknown on American soil? And why eels of all things? It may sound like the beginning of an elaborate joke, but for Rademaker, the founder of RuralWorks, it was the start of a journey filled with unexpected twists and turns.

Delving deeper into the peculiar world of eel farming, Rademaker uncovered a perplexing reality. Despite the surge in consumer demand for sushi, the process of catching, growing, processing, and selling eels in the U.S. was far from straightforward. With strict regulations limiting eel harvesting to a select few states, primarily centered in Maine, the industry was ripe for innovation. This is where Rademaker’s keen eye for untapped potential came into play.

Through meticulous research and strategic partnerships, Rademaker unearthed a game-changing technology from Europe that held the key to bringing baby eels to maturity efficiently using a recirculating aquaculture system. Armed with a vision and the initial support of investors who shared his passion, Rademaker secured around $10 million in debt and equity to kickstart his groundbreaking venture. The stage was set for RuralWorks to make a lasting impact on the rural economy and beyond.

Collaborating with Skip Wyer, RuralWorks’ Chief Investment Officer, Rademaker’s vision began to take tangible shape. Together, they seized upon another opportunity in the form of a proven technology from Europe that had been generating insulation products for over two decades using wood fiber. With unwavering determination, they acquired the necessary equipment from a producer in Europe, paving the way for a transformative leap in the industry.

To fuel their ambitious plans, Rademaker and Wyer navigated the complex landscape of financing, culminating in the successful closure of an $85 million tax-exempt bond underwritten by Citibank. This milestone marked a significant achievement for the duo, solidifying their commitment to innovation and sustainable growth. Bolstered by a robust capital stack comprising diverse funding sources, including grants and investor rounds, RuralWorks continued to expand its reach and impact.

From the initial serendipitous investments in Maine-based enterprises to the groundbreaking ventures in eel farming and insulation technology, Rademaker’s journey with RuralWorks exemplifies the potent mix of vision, perseverance, and strategic collaboration that drives success in the world of rural economic development. As they continue to chart new territories and push the boundaries of innovation, one thing remains clear – the odds may have been improbable, but with passion and dedication, anything is possible.