Upfront Ventures‘ partner Mark Suster recently visited Cincinnati, and raved about the entrepreneurial tech scene in his influential blog Both Sides of the Table.
In the post, Suster mentioned CincyTech by name:
“On my trip to Cincinnati I was giving my standard speech about the need to pool capital on my first morning in town. I was pulled aside after my speech and told that a group had already done this with much success. CincyTech is a local early-stage public private funding entity that pools together capital from local high-net-worth individuals with local community money who want not only returns on capital but also local jobs and innovation. If that isn’t the original definition of “angel” money I don’t know what is. It’s worth having a quick read of the first few paragraphs of their annual report.
CincyTech today has $28.5 million under management across three funds. We have invested $17.3 million in 46 companies and we have helped those companies raise an additional $215 million from venture capital funds and individual investors.
These companies employ 417 people at an average wage of $71,000, and their rate of job creation is accelerating as they move into their growth stage.
One measure of CincyTech’s overall impact is that in 2013, its portfolio companies represent 80% of total seed and early stage capital invested in Southwest Ohio.
This includes AssureX Health that has raised $71 million including capital from Sequoia.
As big wins happen in regional markets this capital often gets “recycled” back into the startup community in the form of angel funding for other startups. As you have more exits in your startup community and more second-time entrepreneurs the growth of a local startup community becomes a self-fulfilling prophecy.”
Read the full post here.