CincyTech works with two kinds of investors
1. Those who co-invest in companies with CincyTech.
2. Those who invest in CincyTech.
Investing with CincyTech
CincyTech typically invests with partners, forming an investment syndicate to help a company achieve investment milestones required to attract follow-on capital from other investors.
If you are a professional venture capital investor or an individual who wants to invest a small percentage of your portfolio in seed-stage companies, CincyTech could be a good investment partner for you.
CincyTech's staff includes executives-in-residence: entrepreneurs and experts in information technology and biosciences who have founded venture capital-backed companies and realized successful exits, as well as scientists and medical technology professionals who have expertise in commercializing laboratory research.
The EIRs lead the due diligence process, consult with companies on all aspects of their business plan, and structure term sheets that lead to an investment. After the investment is made, the EIRs continue to work with the company by serving on its board of directors or as a board observer to help the CEO meet milestones necessary to attract a follow-on investor.
CincyTech also works with the company to help raise the next round of capital.
CincyTech's close working relationship with portfolio companies can reduce the risk of investing at the seed stage.
In CincyTech's first two years of investment activity, co-investors invested more than $26 million in its 10 portfolio companies.
Investing in CincyTech
A wide range of people and entities support CincyTech's overall mission, including individuals, corporations, foundations, research institutions and governments.
Those investors are committing to a strategy of supporting entrepreneurs who will grow companies in this region, creating jobs and helping Ohio's economy transition into the future. They know that in order to execute this strategy, the region must foster an environment where entrepreneurs can find resources and guidance.
The Midwest has not traditionally housed a large pool of venture capital, especially at the seed stage, compared to the money available on the coasts. The state of Ohio recognized this and sought to fill the gap when voters approved Ohio Third Frontier in 2005. The state invested in six Entrepreneurial Signature Programs around the state, including CincyTech in Southwest Ohio, that could provide entrepreneurs in high-tech sectors with capital and talent.
The results are beginning to emerge. Since it began its investment activity in May 2007, CincyTech has seen its portfolio companies create more than 200 jobs at an average annual wage of $58,000. At this rate, its companies are on track to produce up to 1,000 jobs over the next seven to 10 years.
At the same time, CincyTech will have expanded the region's entrepreneurial class with a new cadre of successful business leaders who have the capacity to launch new firms, support the arts and other philanthropic activities, and assume civic leadership responsibilities.
Please contact us if you are interested in learning more about how you could support CincyTech's mission.
