CincyTech, the public/private partnership, seed stage investor, and pillar of the Cincinnati startup community, has reportedly raised it’s largest fund to date. Earlier this month The Cincinnati Business Courier reported that CincyTech has closed on a $10.8 million dollar fund.
CincyTech Fund III, LLC combines a $5 million Ohio Third Frontier investment with $5.9 million raised by CincyTech from Southwest Ohio partners.
Like CincyTech Funds I and II LLC, Fund III will invest in companies focused on information technology and bioscience that are based in or willing to move to Southwest Ohio. The fund has the capacity to invest in at least 15 companies.
“Over the last five years there has been a significant increase in seed stage investment activity in the Cincinnati region. CincyTech Fund III will enable us to continue to invest in entrepreneurs in Southwest Ohio to create jobs and wealth to propel our region forward,” said Bob Coy, president of CincyTech.
CincyTech has a variety of investors that have participated in Fund III, including eight local institutions and 51 individual investors.
“The number of individual investors in Fund III represents a dramatic increase from the nine individual investors in Fund II. These individuals are the foundation of the larger seed stage investment syndicates that we organize for our portfolio companies. Based upon our past investment experience, for every dollar invested in a startup from Fund III, an additional $3 will be invested by other investors in the seed round prior to an investment by an institutional venture capital fund,” said Coy.
Local institutions that have committed to invest in Fund III include Castellini Foundation, Cincinnati Children’s Hospital Medical Center, The Christ Hospital, The Greater Cincinnati Foundation, and the Health Foundation of Greater Cincinnati.
Speaking of Cincinnati, this huge national conference for startups everywhere else is in Cincinnati Sep 29- October 1.