CINCINNATI--(BUSINESS WIRE)--CincyTech, a venture development organization and seed stage investor, has received a $10 million dollar loan from Ohio Third Frontier to help it create CincyTech Fund IV LLC. This will enable CincyTech to continue its mission of investing in high potential life science and technology- based startup companies in Southwest Ohio.
CincyTech has raised $20 million in local matching money—a requirement of the loan—from southwest Ohio institutions, foundations and individuals, bringing the total of CincyTech Fund IV LLC to $30 million. Organizations that have committed to invest in Fund IV include the Greater Cincinnati Foundation, Castellini Management Company and Interact For Health, in addition to more than 70 private investors.
Fund IV will be CincyTech’s largest to date. Like CincyTech’s first three funds, Fund IV will make equity investments in companies focused on technology and the life sciences that are located in or willing to move to southwest Ohio.
“The new fund will allow CincyTech to invest in up to 25 new, high potential technology and life science companies over the next five years,” said CincyTech President and CEO Robert W. Coy. “The impact of Ohio Third Frontier is evident in the number of tech startups thriving in southwest Ohio, and in the quality of the companies we are helping to create and grow.”
Companies in CincyTech’s portfolio include Mason-based Assurex Health, which employs 400; downtown-based LISNR, which has received investment from Intel Capital; Enable Injections, Zipscene and Eccrine Systems.
Since 2007, CincyTech has invested $25.5 million in 60 companies, which have gone on to raise $506.2 million dollars in co- and follow-on investment, to generate $187.4 million in revenues and to create and retain 789 jobs with an average salary of $75,500.
CincyTech is a venture development organization and seed stage investor is southwest Ohio. Supported by Ohio Third Frontier with matching grants from corporations, foundations and local governments, its mission is to drive talent and capital into high potential technology and life science companies in southwest Ohio. CincyTech is among the most active seed funds in the Midwest, and has been recognized nationally for increasing access to capital in the region.