Seed stage investor and venture developer CincyTech said today it closed a $31 million funding round to support approximately 25 digital and life science companies in southwest Ohio over the next 3 years.
The fund, the 4th for the company, combines $21 million in private placement raised by Cincinnati-based CincyTech along with a $10 million Ohio Third Frontier loan.
“Fund IV exceeds CincyTech’s previous three funds combined, in terms of both capital raised and number of investors. This broadening base of community investment in Fund IV demonstrates confidence in the companies we are helping to build and interest in the entrepreneurial potential of our region,” CEO Bob Coy said in a press release.
Financing raised in the round came from 79 individual investors and 12 instituteions, including Cincinnati Children’s Hospital Medical Center, Castellini Management Company, Interact for Health, The Greater Cincinnati Foundation, Western & Southern Financial Group, and UC Health, the company said.
“Experience shows Midwest companies must often clear a higher bar to attract venture capital. The Ohio Third Frontier recognized this need and allowed us to raise a larger fund to address the gap from seed-to-early stage venture capital. With more deal flow across the digital and health care domains, CincyTech and our co-investors can now accelerate our most promising companies from validation to market entry,” managing director Mike Venerable said in prepared remarks.
CincyTech said its 1st seed fund was launched in 2007, and so far has invested $25.5 million in 60 companies in southwest Ohio, creating 826 jobs and attracting $551.6 million in co and follow-on investments with $194 million in revenues