Read our 2007-2009 Bi-Annual Report.
Eleven companies, $3.4 million, 175 jobs.
That’s the measure of CincyTech’s work, two years after it launched its venture development activity. It's also helped drive $34 million in outside capital into local startup companies.
The public-private partnership was created with a mission to strengthen Southwest Ohio’s regional economy by driving financial capital into high-potential technology companies to accelerate their growth.
So far it has made investments in 11 such companies, most recently Blackbook EMG, a high-tech human resources firm that helps companies integrate their new employees with individual consulting, facilitated networking and an online platform called Compass that evaluates an individual’s or a family’s interests and helps them connect with appropriate local resources, attractions, activities and people.
In all, CincyTech has invested in eight information technology companies and three bioscience firms. One of its most promising investments to date is Akebia, a drug-development company that was founded by out-licensing drug programs developed at Procter & Gamble and has since received $26 million in investment from CincyTech and partner venture capital firms and other investors.
With substantial support from Ohio Third Frontier and corporations, universities, hospitals, foundations, and the Cincinnati USA Regional Chamber, CincyTech has laid the groundwork for expanding the base of high-potential technology companies in the region.
CincyTech President Bob Coy says the organization’s work has helped shape the way the region thinks about investing in entrepreneurs as an economic development tool.
“The idea of building companies locally and organically has become a key part of our civic and business strategic planning goals,” Coy said.
Supporting startups also is a way to build new industries and expand on the successful existing ones, he added.
“Many of the CincyTech portfolio company entrepreneurs are former employees of local Fortune 500 companies such as Procter & Gamble who see an opportunity for expanding a market.”
Since launching its program in May 2007, CincyTech has achieved the following results:
- Considered 350 investment opportunities;
- Advised 100 companies;
- Invested $3.4 million in 11 companies, with an additional $34 million invested in those companies by investment partners; and
- Helped other companies raise $15.8 million in venture capital.
As of June 30, 2009, CincyTech’s portfolio companies, most of which were pre-revenue at the time of investment, have created 175 jobs at an average annual salary of $66,000.
Over the next seven years, these and future portfolio companies could create up to 1,000 high-paying jobs at companies headquartered in the region.
James Anderson, president and CEO of Cincinnati Children’s Hospital Medical Center, is chairman of the board of CincyTech. He says CincyTech’s work contributes to the region’s economy, which requires the constant development of new companies in high-growth sectors in order to be renewed.
“To that end, CincyTech enriches the environment for local technology entrepreneurs, increasing the likelihood that they will launch their businesses here – and flourish.”
About CincyTech:
In 2007, CincyTech won a $15 million grant from Ohio Third Frontier, matched by $7.5 million from local corporations, foundations, research institutions, and local government.
Our mission is to build high-growth technology businesses in software, digital media, life sciences, and technology-enabled services. This work is complementary to the Cincinnati USA Partnership's work in retaining and recruiting other businesses. Unlike other economic development entities, we directly invest in and rally capital around emerging opportunities that have the potential to anchor our economy in the future.
CincyTech combines investments from a $10.5 million for-profit seed fund with the skills of a team of executives-in-residence who have built their own high-growth companies. We have shown that this combination of investment capital and management assistance can make a significant contribution to a company's progress.