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
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