The 2014 Ohio VentureReport, released today, shows that startup company formation continues to increase thanks in large part to Ohio’s Third Frontier Program (OTF) and active angel investor community. $321 million was invested into 210 Ohio companies, primarily in the information technology and life sciences sectors.
At the other end of the continuum, Ohio saw successful exits from several Ohio-grown companies that delivered well over $1 billion in financial returns to employees and investors in the past year, helping to put Ohio on the map as a center for entrepreneurial activity. All of these companies were supported in their launch and early growth by angel and/or venture investors based in Ohio.
The boom of seed and startup stage companies has created an early-stage capital gap as these new companies move through the continuum. As these new companies accelerate their commercialization and hiring, they require venture capital to fuel growth. Respondents to VentureOhio’s 2014 survey indicated that 115 of these companies will require $633 million in funding before the end of 2016 to sustain projected job creation and growth, although Ohio institutional investors reported to have only $241 million on hand, creating an early-stage capital gap of $392 million. This capital need comes at a time when the number of active early-stage venture capital firms is decreasing, and the capital available from existing firms is reported to be less than half of the need cited above.
The 2014 VentureReport also highlighted active business building and capital resources in Ohio, and seven startups on the fast track to exit.
The full report can be downloaded here. Please take a look and share it with your network. It is time to take center stage, and Ohio is ready!