| Follow Us:

Innovation + Startup News

CincyTech closes Fund II round, will invest $4.4 million in 10-12 startups

CincyTech has just closed a $4.4 million investment round for a seed fund that will invest in 10-12 Southwest Ohio high-tech startups.

CincyTech Fund II follows Fund I, which launched in 2007 with $6 million from the Ohio Third Frontier program and $4.4 million from local corporations, foundations and institutions. Fund I has been fully committed or reserved. The initial CincyTech Fund led to investments in 24 local companies.

As with the first fund, Fund II is comprised of a mix of public and private dollars. CincyTech matched $2 million announced earlier this year from Ohio Third Frontier with $2.4 million raised from Southwest Ohio partners.

That $2 million state award is part of the $25 million invested statewide 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 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.

There are plans to announce new CincyTech investments in the next few weeks.

"The timing of the Fund II's closing is crucial because we have such an active pipeline of potential investments," says CincyTech president Bob Coy.

Like CincyTech Fund I LLC, Fund II will invest in companies focused on information technology, bioscience and advanced manufacturing and that are based in or willing to move to Southwest Ohio.

In addition to financial investments, CincyTech also offers business support services like management assistance, business plan development and Imaging Grants which help cover the costs of fleshing out an idea and making it a potential business. Grants can cover technology validation studies, market analysis and other work.

By Feoshia Henderson
You can follow Feoshia on Twitter @feoshiawrites

Signup for Email Alerts
Share this page
0
Email
Print
Signup for Email Alerts