CINCINNATI--(BUSINESS WIRE)--CincyTech has closed a $30.75 million dollar fund, enabling investment in approximately 25 high potential digital and life science companies in southwest Ohio over the next three years. CincyTech Fund IV, LLC is the seed stage investor and venture development organization’s fourth and largest fund to date.
Fund IV combines $20.75 million in private investment raised by CincyTech with a $10 million Ohio Third Frontier loan. The fund includes participation from 79 individual investors and 12 institutions, including Cincinnati Children’s Hospital Medical Center, Castellini Management Company, Interact for Health, The Greater Cincinnati Foundation, Western & Southern Financial Group, and UC Health.
“Fund IV exceeds CincyTech’s previous three funds combined, in terms of both capital raised and number of investors,“ said CincyTech president and CEO Bob Coy. “This broadening base of community investment in Fund IV demonstrates confidence in the companies we are helping to build and interest in the entrepreneurial potential of our region.”
With a larger fund and a growing network of co-investors, CincyTech can support companies from concept to early stage growth.
“Experience shows Midwest companies must often clear a higher bar to attract venture capital. The Ohio Third Frontier recognized this need and allowed us to raise a larger fund to address the gap from seed-to-early stage venture capital,” said Mike Venerable, Managing Director of CincyTech. “With more deal flow across the digital and health care domains, CincyTech and our co-investors can now accelerate our most promising companies from validation to market entry.”
CincyTech launched its first seed fund in 2007, addressing a regional shortage of seed stage capital necessary for a tech startup economy to take root. Since investment activity began, CincyTech has become one of the Midwest’s most active seed funds, investing $25.5 million in 60 companies in southwest Ohio, which have created or retained 826 jobs, attracted $551.6 million in co- and follow-on investment, and generated $194 million in revenues. Three companies have exited.
CincyTech is a venture development organization based in Cincinnati, Ohio, which provides core entrepreneurial services and seed and seed plus stage investment to technology and life science companies in Southwest Ohio. CincyTech matches funding from Ohio Third Frontier with dollars raised locally from institutions and individual investors.