What is the profile of CincyTech’s target companies?
CincyTech’s target start-ups are early-stage companies headquartered in or willing to move to Southwest Ohio (Brown, Butler, Clermont, Clinton, Hamilton, Highland, or Warren counties) that have strong potential to become high-growth businesses. CincyTech considers a company to be early stage if it has no revenue up to $5 million in revenue and fewer than 30 employees. High-growth means the company can reach $30 million to $50 million in revenues within five to seven years.
What services does CincyTech provide?
CincyTech provides management assistance, advising and consulting to start-up companies. Those companies who meet the investment criteria may be eligible to receive an equity investment. CincyTech also will help companies approach and obtain investments outside of its seed funds.
How does CincyTech make the investment decision?
We review all business plans that are submitted in our process and select companies that have the capability to become an investable high-growth company. Based on a rigorous due-diligence process, CincyTech’s investment committee will make the decision about whether to invest in the company.
Does a company have to pay CincyTech for its services?
As a general rule, no. However in some instances, a client that is not an investment candidate and requests a substantial amount of time from an executive-in-residence will be asked to compensate CincyTech in an amount to be negotiated on a company by company basis.
Do you help with the patent or trademark processes?
If your business receives a financial investment from CincyTech, a portion of that investment may be used to further develop or secure intellectual property, commonly through patent protection or to register crucial trademarks or service marks.
Can a company receive business-development assistance and not funding?
Yes. If your company is asked to present to CincyTech, you will benefit from our intensive advising process, whereby a CincyTech investment associate works with you to refine your business plan and presentation to make it more “investor ready.” This assistance can be extremely beneficial to companies whether or not they progress toward receiving an investment.
How long does the investment process take?
As with any investor, CincyTech’s process decision time frame can vary from one investment to the next. In general, from receipt of a potential company’s executive summary to a decision to fund takes eight to 10 weeks. After a decision has been made, due diligence can take an additional two to six months.
Does CincyTech focus on any particular types of businesses?
- Information technology (IT)
- Life sciences and biotechnology
- Advanced Manufacturing and Materials
Does CincyTech provide grants?
Yes. CincyTech has limited funding available for Imagining Grants. For more information on Imagining Grants, click here.
Who owns CincyTech?
CincyTech is a partnership of the Cincinnati USA Regional Chamber, Cincinnati Children’s Hospital Medical Center, and the University of Cincinnati. It operates as an independent organization, however, with its own executive committee.
In 2006, the following organizations and companies raised $7.5 million in matching capital required for CincyTech to apply for and be named the Southwest Ohio Entrepreneurial Signature Program operator for Ohio Third Frontier:
- Butler County
- The Castellini Foundation
- Cincinnati Bell
- The Cincinnati USA Regional Chamber
- Cincinnati Children’s Hospital Medical Center
- The City of Blue Ash
- The City of Mason
- Clermont County
- Fort Washington Investment Advisors
- Hamilton County Development Corp.
- Health Foundation of Greater Cincinnati
- PNC Bank
- Procter & Gamble
- Thompson Hine law firm
- The University of Cincinnati