A new
CincyTech seed fund that will go toward the nonprofit's mission of financing Greater Cincinnati tech-based startups has received a $2 million match from the Ohio Third Frontier fund.
CincyTech Fund II comes just as the first fund - started in 2007 with a mix of private and public dollars - is nearly fully committed or reserved. CincyTech Fund I was launched in 2007 with a $6 million from Third Frontier and $4.4 million from local corporations, foundations and institutions.
"This newest investment in CincyTech from Ohio Third Frontier is a strong endorsement of the success we have had to date and will allow us to continue to invest in high-growth-potential local companies," CincyTech President Bob Coy said in a release announcing the award.
The $2 million award is part of the $25 million invested across the state through Ohio Third Frontier's Pre-Seed Fund Capitalization Program and Entrepreneurial Signature Program Continuity Initiative. Third Frontier is a target economic develop and job creation program approved by voters.
The 10-year $1.6 billion state initiative aims to grow Ohio's economy by investing in key competitive economic sectors: advanced and alternative energy, biomedical, advanced materials, instruments, controls, electronics and advanced propulsion. The effort launched in 2002. In May 2010 voters overwhelmingly approved a $700 million bond issue renewal.
CincyTech raised $2.3 million for CincyTech II; the state match maxed out at $2 million. A number of local organizations have committed to investing: the Castellini Foundation, Cincinnati Children's Hospital Medical Center, Fort Washington Capital Partners, the Greater Cincinnati Foundation, the Carol Ann and Ralph V. Haile Jr. /U.S. Bank Foundation, and the Health Foundation of Greater Cincinnati, as well as several private investors.
The initial CincyTech Fund led to investments in 18 local companies; the organization plans to invest in five more this spring. These investments have created 250 jobs and attracted $60 million in additional investor dollars, CincyTech says.
Among the companies CincyTech has invested in are
AssureRx, formed to license and commercialize personalized medicine technology research from Cincinnati Children's Hospital Medical Center and the Mayo Clinic,
ThinkVine, a high-tech consumer marketing firm, and
Brighton Technologies, whose highly specialized Surface Energy Probe assesses a surface's readiness for bonding, coating, or printing.
Writer: Feoshia Henderson
Source: CincyTech, Ohio Third Frontier
You can follow Feoshia on twitter
@feoshiawrites
Enjoy this story?
Sign up for free solutions-based reporting in your inbox each week.