Navigating Our Next Chapter - Reflections and Future Directions

May 12, 2025

by Dr. James Stapleton
Co-founder, President and CEO of codefi and the codefi Foundation on Rural Innovation

I. Introduction: A Personal Perspective

Every meaningful journey has its turning points. Today, I'm sharing a chapter in our company's story that represents both reflection and renewal. Business isn't just about products or revenue—it's about people, vision, and the courage to embrace transformation.

As we step into codefi's 11th year of operation in 2025, I find myself looking back at our path with immense pride, yet simultaneously excited about the road ahead. Our journey hasn't always been straightforward, but it has always been authentic to our core purpose: eliminating the skills and opportunity gaps that prevent communities outside of major metros from thriving in the tech economy.

This moment of transition is significant—our co-founder and Executive Director, Chris Carnell, stepped down at the end of 2024 to pursue new opportunities after a decade of visionary leadership. While change can be challenging, I've always believed that these pivotal moments offer us the greatest potential for growth and innovation.

The story of codefi is, at its heart, a story of believing in the untapped potential of smaller cities and rural communities. When we began this venture in 2014, conventional wisdom suggested that meaningful tech innovation could only happen in coastal hubs like San Francisco or New York. We rejected that notion. We saw Cape Girardeau—and the broader Southern Missouri region—not as a limitation but as an advantage: a place where innovation could flourish without the distractions and excessive costs of metropolitan areas, where entrepreneurs could build strong community connections, and where talent could develop with purpose and focus.

As I reflect on our first decade and look toward the future, I'm reminded of a quote that has guided my approach to entrepreneurship: "The best way to predict the future is to create it." At codefi, we're not waiting for economic trends to determine our region's fate—we're actively building the ecosystem that can enable technology-based prosperity for generations to come.

II. Our Journey: From Concept to Reality

When we first opened our doors on November 7, 2014, in Cape Girardeau's historic Federal Building, codefi was more than just the area's first co-working space and technology incubator. It represented our belief that rural communities deserve the same access to technology-driven economic opportunities as major urban centers. Chris Carnell and Brian and Heather Holdman and I shared a vision: to be a catalyst for increasing the formation and growth of technology-based companies in our region.

The early days weren't without challenges. We faced skepticism about whether a smaller city or rural community could support a tech ecosystem. Resources were limited, and we were pioneering a model that hadn't been widely tested outside major tech hubs. Yet we persevered, driven by our conviction that Southeast Missouri possessed untapped potential for tech innovation.

In those initial months, our focus was on creating a physical space where technology professionals and entrepreneurs could collaborate. We started small but were intentional about designing an environment that fostered creativity and connection. This wasn't just about providing desks and Wi-Fi; it was about cultivating a community where ideas could cross-pollinate and innovations could emerge.

Our first significant milestone came in March 2015 when we hosted our first Google Startup Contest, bringing together entrepreneurs to pitch their ideas and connect with mentors. These early initiatives, though modest in scale, signaled our commitment to building a comprehensive support system for technology innovation.

Our next breakthrough came when we launched the 1ST50K startup competition in 2015, offering non dilutive grants to innovative startups willing to locate in Cape Girardeau. What began as a local initiative soon drew applications from entrepreneurs across the globe, demonstrating that talent and innovation know no geographical boundaries. The inaugural competition attracted entries from 13 countries, a clear indication that our vision had global appeal.

As we grew, we expanded our physical footprint into the Marquette Tower in 2016, creating the Marquette Tech District—a testament to our commitment to revitalizing downtown Cape Girardeau while building a tech community. This move was part of a $20 million real estate and economic development project that transformed a historic neighborhood into a modern innovation hub. The expanded space allowed us to accommodate more members, host larger events, and create dedicated areas for training and collaboration.

With this growth came the opportunity to develop additional programs addressing various aspects of the technology ecosystem. In 2016, we launched Code Labs One,¹ a 20-week training program designed to introduce adults to computer programming using emerging tools. This initiative directly addressed one of the most significant barriers to technology-based economic development in our region: the shortage of skilled software developers.

Recognizing the importance of engaging young people in technology education, we also developed the Youth Coding League,² which has introduced 7,958 students to computer programming. This program aims to make coding as celebrated as athletics in schools, with Chris Carnell noting that he wanted students to "feel as much a superstar as a star football player walking down the high school hallway." By fostering interest in technology from an early age, we're helping to build a pipeline of talent that will support the region's tech ecosystem for years to come.

Our impact continued to expand through partnerships with regional and national organizations. In 2019, codefi and the Marquette Tech District Foundation were selected to participate in the inaugural Rural Innovation Initiative³ by the Center on Rural Innovation (CORI),⁴ a national organization focused on creating digital economic opportunities in rural communities.

Perhaps our most significant milestone came in 2022 with the launch of Innovate SOMO,⁵ one of the largest regional workforce and business development networks in Missouri's history. This groundbreaking partnership⁶ with efactory⁷ at Missouri State University expanded our impact across 47 counties in Southern Missouri, creating a comprehensive ecosystem to support digital workforce development and tech entrepreneurship.

The launch of Innovate SOMO Funds⁸ in April 2024 represents a pioneering approach to regional venture investment. This unique funding mechanism combines a non-profit fund supported by charitable contributions with a for-profit fund backed by limited partners, enabling equity and revenue-based investments in startups across southern Missouri. This innovative model addresses one of the most significant barriers to entrepreneurship in rural areas—access to capital— and has already attracted significant support.

And our most recent milestone came in April 2025, when Missouri Department of Economic Development (DED) leadership joined regional business and economic development leaders at a media event in downtown Cape Girardeau to celebrate receipt of a $2.94 million federal grant.⁹ This award builds upon the success of Innovate SOMO to further support entrepreneurship in every region of our state, including rural areas.

Today, our impact is measurable: we've supported the launch of over 80 startups that have raised more than $50 million in equity investments and created over 300 jobs. We've trained more than 400 adults through Code Labs, helping many secure careers in tech. We've introduced 7,958 youth to computer programming, planting the seeds for the next generation of technologists. And our co-working space encompassing nearly 17,000 square feet is a vibrant hub for innovation and collaboration, and continues to anchor historical redevelopment in downtown Cape Girardeau.

These numbers represent lives changed and communities strengthened—the true measure of our success. Behind each statistic are stories of entrepreneurs who found the support they needed to bring their ideas to life, career changers who discovered new opportunities in technology, and young people who developed skills that will serve them throughout their lives. Collectively, these individual successes are transforming the economic landscape of our regions, creating a more diverse and resilient economy that can thrive in the digital age.

III. Departing Co-Founder Chris Carnell's Legacy

Reflecting on Chris Carnell's decade-long journey with codefi evokes immense gratitude for his visionary leadership. Chris didn't simply help build an organization—he created a vision that will continue evolving long after his transition.

What truly distinguished Chris was his ability to conceptualize and implement transformative programs. As Executive Director of the codefi Foundation on Rural Innovation, he spearheaded initiatives that fundamentally changed our region's approach to technology education and entrepreneurship:

• The 1ST50K startup competition, which evolved from a local contest to a nationally recognized initiative that attracted innovative companies to Southeast Missouri
• Code Labs, which has equipped hundreds of adults with skills for careers in software development
• The Youth Coding League, which introduced computer programming to students across the region, elevating coding to the same status as athletics in rural communities

In 2022, Chris's leadership was instrumental in securing a $2 million grant from the U.S. Economic Development Administration to support the Southern Missouri Innovation Network (Innovate SOMO). His approach to economic development was data-driven and focused on tangible outcomes, yet deeply optimistic about the potential for transformation.

Chris's impact extends beyond specific programs to the relationships he built throughout the community. He fostered connections between entrepreneurs, educators, investors, and community leaders, creating an integrated ecosystem that supports innovation.

One of the initial cultural pillars at codefi—that sense of family and fun—was very much driven by Chris's personality. He's the first to celebrate others' accomplishments and crack a joke when things get tense.

So, as Chris steps away to pursue his next chapter, we want to celebrate him. Thank you, Chris, for everything—for dreaming this up with me, Brian, and Heather back in 2014, for pouring your all into building something special here, and for touching so many lives along the way.

IV. The Road Ahead: Strategic Vision

As we look toward the future, our strategic vision builds upon the strong foundation we've established while embracing emerging opportunities in the evolving digital landscape. The technology sector continues to transform at an unprecedented pace, with artificial intelligence, cloud computing, and data analytics reshaping industries and creating new possibilities for innovation.

The market landscape for rural tech ecosystems has evolved significantly since our founding. What was once considered an outlier approach—building tech hubs outside major metropolitan areas—has gained mainstream recognition. The rise of remote work, accelerated by global events, has further validated our model by demonstrating that technology talent can thrive anywhere, not just in traditional tech centers.

This shift in work patterns has coincided with a growing recognition of the challenges associated with concentrated tech development in major urban centers, including sky-high housing costs, infrastructure strain, and quality of life concerns. As a result, both individuals and companies are increasingly looking to smaller communities that offer affordability, strong community connections, and high quality of life—precisely the attributes that small town Missouri provides.

Our unique positioning at the intersection of technology, education, and economic development gives us a distinctive advantage in addressing the specific needs of rural communities. Unlike urban-focused incubators, we understand the challenges and opportunities unique to regions like Southern Missouri. Our deep community connections and proven track record make us a trusted partner for both entrepreneurs and institutional stakeholders.

Looking ahead, we see several key strategic directions for growth:

• Improving startup success with emerging tech and new support approaches: Early-stage founders often struggle to navigate from idea to investment through fragmented, under-resourced systems. Our new Traction Studio AI¹⁰ platform addresses this challenge by providing founders with AI-powered tools and insights to accelerate decision-making and increase market traction. While research shows that new companies create jobs faster than mature establishments, most startups face significant obstacles. Traction Studio AI helps founders focus on building what matters rather than guessing what works. The platform also enables experienced startup studio teams to guide more startups effectively and helps investors identify better-prepared opportunities.
• Expanding our investment infrastructure: The April 2024 launch of Innovate SOMO Funds represents a pioneering approach to regional venture investment. By blending non-profit funding from charitable contributions with a for-profit fund backed by limited partners, we've created a sustainable model for investing in early-stage startups throughout Southern Missouri. This addresses one of the most significant barriers to rural entrepreneurship—access to capital. Focusing on high-growth software solutions across various industries, we'll make investments of $50,000 to $200,000 in promising startups. We aim to deploy these funds within 2-3 years, creating a portfolio that drives regional economic growth while complementing the mentoring and education resources provided through codefi and efactory.
• Deepening our workforce development initiatives: As technology evolves, so must our training programs. With every business now dependent on digital tools, the demand for tech talent in rural areas is soaring. Remote work has created unprecedented opportunities—enabling developers in small-town Missouri to contribute to Silicon Valley projects or launch startups locally with codefi's support. Responding to rapid innovation in AI, machine learning, and cybersecurity, we've expanded Code Labs with specialized courses in these emerging fields. Our partnerships also deliver cutting-edge training in data analytics and UI/UX design, preparing our workforce for tomorrow's technology landscape.
• Strengthening regional partnerships: Our collaboration with efactory and the broader Innovate SOMO network has demonstrated the power of regional cooperation. We'll continue to build and nurture these partnerships, ensuring that resources and opportunities are accessible across Southern Missouri and beyond. The recent award of a $2.94 million grant to create the Missouri Technical Assistance (MOTA) Program, in collaboration with efactory, exemplifies the potential of these partnerships. This program will provide accounting, financial advisory, and legal assistance to small businesses throughout the state, addressing critical needs that often hinder growth and development.
• Fostering tech adoption in traditional industries: Many established industries in our regions stand to benefit from technological innovation. We'll work to bridge the gap between tech startups and traditional sectors like agriculture, manufacturing, and healthcare. Agriculture, a cornerstone of Southern Missouri's economy, offers particularly rich opportunities for technology integration. From precision farming and supply chain optimization to sustainable practices and direct-to consumer platforms, agricultural technology (agtech) represents a promising area for innovation that builds on our region's existing strengths.

Our strategic direction is informed by both data and experience. U.S. Census data shows that 82% of new jobs in recent years were created by new companies, many in the tech sector. If we can catalyze the formation of 50 new high-tech, high-growth companies in our region, we could add 250 jobs with an annual economic impact exceeding $40 million. These figures underscore the potential economic benefits of our work and reinforce the importance of supporting entrepreneurship and innovation throughout smaller cities and rural regions across Missouri.

With our new leadership team in place, we're well-positioned to execute this vision and continue our mission of eliminating the skills and opportunity gaps that prevent rural communities from thriving in the digital economy.

V. New Leadership Spotlight

As we embark on this new chapter, I'm thrilled to introduce the exceptional leaders who have joined or been promoted within our organization. Our expanded leadership team brings diverse expertise and fresh perspectives that will help drive codefi's mission forward.

Each of these leaders shares a commitment to our mission of eliminating skills and opportunity gaps in rural regions. Their diverse backgrounds and complementary skills create a leadership team that is well-equipped to guide codefi into its second decade of operation. Together, we're focused on scaling our impact, enhancing our programs, and continuing to serve as a catalyst for technology-based economic development throughout Missouri.

VI. codefi's Commitment: Values and Vision

As we navigate this transition and embrace new opportunities, our fundamental values remain unchanged. From our earliest days, codefi has been guided by a set of core principles that continue to inform everything we do:

• Accessibility: We believe that everyone, regardless of background or location, deserves access to the opportunities created by the digital economy. This commitment to accessibility drives our educational programs, our approach to entrepreneurship, and our focus on rural communities that have historically been overlooked by the tech industry.
• Innovation: We embrace innovation not simply as a buzzword, but as a practical approach to solving real problems. This applies both to the startups we support and to our own organizational development. We continuously evaluate and evolve our programs to ensure they meet the changing needs of our community.
• Collaboration: We believe that meaningful progress happens through partnership, not isolation. Our collaborative approach is evident in initiatives like Innovate SOMO, which brings together diverse stakeholders from across Southern Missouri to create a comprehensive ecosystem for tech-based economic development.
• Resiliency: We recognize that building something new—whether a startup, a program, or a regional tech ecosystem—involves challenges and setbacks. We embrace these as opportunities for growth and learning, modeling resilience for the entrepreneurs and communities we serve.
• Impact-Driven: While we operate with business discipline, our ultimate measure of success is our impact on individuals, organizations, and communities. We track metrics like jobs created, investments secured, and skills developed because they represent tangible improvements in people's lives.

These values inform our long-term vision: to establish the smaller cities and rural regions of Missouri as a nationally recognized hub for rural innovation, where technology entrepreneurship drives economic growth and creates opportunities for all residents. We envision a future where our region's tech ecosystem is self-sustaining, with successful founders reinvesting in the next generation of startups, skilled tech workers supporting a diverse range of companies, and collaborative networks facilitating continuous innovation.

Our commitment extends beyond economic development to community transformation. We believe that thriving tech ecosystems contribute to vibrant communities with strong educational systems, engaging cultural offerings, and high quality of life. By fostering technology-based economic development, we're helping to create communities where talented individuals choose to live, work, and invest.

With our expanded leadership team, reinvented startup and workforce programs and services, enhanced investment infrastructure, and deepened regional partnerships, we're well-positioned to realize this vision and continue making a meaningful difference in the communities we serve.

VII. Closing: An Invitation and Promise

Change isn't just inevitable—it's an opportunity. As we step into this next chapter, we're not just promising innovation. We're inviting you to be part of our continued journey.

To Our Entrepreneurs

We remain committed to providing you with the resources, mentorship, and capital you need to build successful tech companies in the smaller cities and rural towns in Missouri.

To Our Investors

We are poised and eager to utilize our unique investment model to allow you to do good and do well, and invest to keep our best, brightest, and most entrepreneurial at home.

To Our Career Changers

Whether you're a young person exploring tech or an adult seeking new skills through Code Labs, we're dedicated to equipping you with the emerging skills and support you need to thrive in the digital economy.

To Our Partners and Supporters

Your collaboration and investment have made our work possible. As we expand our programs and impact, we look forward to deepening these partnerships and finding new ways to advance our shared goals.

To Our Community

You have embraced our vision and supported our growth from day one. We remain committed to building a tech ecosystem that creates opportunities for all residents and contributes to the vitality of our regions.

To Chris Carnell

Your vision, dedication, and friendship have been instrumental in building codefi into what it is today. While your daily presence will be missed, your impact will continue to shape our organization and community for years to come. We wish you every success in your new endeavors.

As we mark codefi's 11th year and embrace this leadership transition, I'm filled with gratitude for what we've accomplished together and excitement for what lies ahead. The challenges facing smaller and rural communities in the digital economy remain significant, but so do the opportunities. With our experienced leadership team, innovative programs, and unwavering commitment to our mission, codefi is well-positioned to continue driving positive change.

In the words often attributed to Abraham Lincoln, "The best way to predict your future is to create it." That's exactly what we're doing at codefi—creating a future where geography doesn't determine opportunity, where innovative ideas can flourish regardless of location, and where technology drives economic growth throughout.

Thank you for being part of this journey. The best is yet to come.