Prairie Portraits: Tess McKinney – Silicon Prairie News

Meet Tess McKinney, Founder & CEO @ XRenegades

How would you describe the startup culture in Nebraska?

Nebraska’s startup culture is vibrant and supportive, with a strong sense of community and collaboration. In addition, there is a growing emphasis on innovation. The ecosystem is tightly knit, with entrepreneurs, investors, and support organizations working closely together. Resources like the Nebraska Tech Collaborative, the Small Business Administration, and the Nebraska Department of Economic Development provide the necessary infrastructure, including incubators, accelerators, funding, and mentoring programs, to help startups grow and thrive.

While Nebraska has a strong agricultural and manufacturing base, startups in sectors like agtech, fintech, healthtech, and edtech are gaining traction. There is a unique focus on rural entrepreneurship, aimed at revitalizing rural communities and supporting small businesses outside of urban centers.

Nebraska offers a high quality of life with a lower cost of living, which is attractive to entrepreneurs who want to start and grow their businesses without the financial pressures of larger cities. Events like startup competitions, hackathons, and pitch events are common, providing entrepreneurs with opportunities to present their ideas, receive feedback, and gain exposure.

How do you find the balance between taking risks and making informed decisions in the pursuit of innovation?

At XRenegades, we embrace the inherent risk of pioneering new technologies. I am fundamentally a risk taker—my entire business venture into immersive technology was a leap into relatively uncharted territory. The field is still evolving.

When I started integrating XR technologies into educational environments, it wasn’t a local endeavor, but a global initiative. I’ve partnered with over 40 companies worldwide and worked with prestigious institutions like Ohio State University College of Nursing and University of Texas Health at San Antonio School of Nursing and Dentistry.

The challenges are significant, especially in terms of funding, as many are still unaware of the possibilities offered by immersive learning. The adoption process in educational institutions has been slow, and while some may be late to adopt these technologies, I see it as part of an evolution—much like the gradual integration of computers into everyday use.

People’s skepticism drives me; their cautious approach means everything in my field is thoroughly vetted with demos, which works to our advantage.

How do you define success and what metrics do you pay most attention to?

Defining success for my business involves a combination of objective achievements and subjective satisfaction with our impact. Here is how I measure success:

Project milestones: Successfully obtaining grants and implementing our technological solutions at universities are important determinants of success.

Client goals: Another key indicator of success is achieving the goals set by the institutions we work with. Whether it’s creating a new VR/XR lab or integrating immersive technology into the curriculum, the success of these projects is measured by how well they meet the specific needs and aspirations of those institutions.

Financial health: On a practical level, maintaining financial stability is a key indicator of success. Staying green, avoiding debt, and managing finances effectively are key.

Unique position on the market: We are the only recognized consultant actively implementing VR/XR labs for healthcare facilities in the U.S. Occupying this unique position is both a measure and definition of success.

Engagement on LinkedIn: Monitoring the growth and engagement of my LinkedIn followers is another key metric. With almost 12,000 followers, my LinkedIn platform serves as a vital channel for disseminating industry news, sharing insights, and showcasing the latest immersive technology applications and hardware.

What are the biggest challenges and opportunities facing startups in Nebraska?

The three biggest challenges for my company, and for others as well, especially in such a specialized and innovative field as virtual reality and immersive technologies, are closely related to the knowledge and comfort of the local business ecosystem in terms of new technologies.

Financial constraints: A major challenge is access to funding. Traditional investment models in Nebraska tend to favor more conventional companies, meaning startups that don’t fit those molds—such as an immersive technology company focused on healthcare and edtech—may have difficulty attracting local investors. While I’ve established a global reputation, the local investment community may see my focus as too specialized or risky due to my pioneering nature and the local market’s limited understanding of the technology’s potential.

Recognizing and understanding the market: Another significant challenge is building awareness and understanding in the local market. Being the only provider of VR and immersive consulting technologies in Nebraska presents a unique obstacle. This lack of awareness can impact local client acquisition and partnership opportunities. There is a general lack of understanding of what XR (Extended Reality) and immersive consulting technologies mean. I am currently trying to improve this by traveling around the state and speaking to local/state educational institutions.

Access to local resources: It took me a while to discover the resources available to startups in Nebraska. While the state offers excellent support, once you find it, the journey to discovering these resources was difficult. Currently, information about such resources seems to be concentrated around colleges and universities, which is not where all entrepreneurs are located. A broader advertising strategy about available grants and support services could make a big difference, making it easier for new business owners to find the help they need without having to navigate complicated networks or ask the right questions.

What emerging industry or technology do you think will have a significant impact on the Nebraska startup ecosystem in the next few years?

One emerging technology that I believe will have a significant impact on Nebraska’s startup ecosystem in the next few years is “digital twins.” Every company on the planet will eventually need a digital twin, a virtual replica of physical entities used to simulate, predict, and optimize performance in real time. If we start implementing and helping employees learn how to build living, breathing digital twins now, our state can stand out as a leader in this space.