Ohio Entrepreneurs Need $523MM Over Next 18 Months For Growth and Job Creation

Ohio Entrepreneurs Need $523MM Over Next 18 Months For Growth and Job Creation

OHIO ENTREPRENEURS NEED $523 MILLION OF EARLY-STAGE INVESTMENT OVER NEXT 18 MONTHS TO CONTINUE GROWING AND CREATING JOBS

Columbus, Ohio – May 28, 2014 – VentureOhio reported today that 176 Ohio companies need to raise more than $523 million of early-stage capital over the next 18 months to support continued growth and job creation.

The results of the VentureOhio survey—the first of its kind for Ohio—are based on responses from 28 angel investment groups, entrepreneurial signature programs, venture capital funds and business accelerators across the state. The results confirm the substantial near-term need for early-stage capital in Ohio.

The growing need for early-stage capital reflects a strengthening ecosystem that has been supported by state sponsored programs like the Ohio Third Frontier.  According to its own reports, Ohio Third Frontier has supported over 1,000 seed and start-up companies in the past decade.  A large number of these companies are now at the stage where they require early-stage capital to continue building their businesses and creating jobs in Ohio.

“The survey results are not surprising as seed and start-up funding sources in Ohio have done a great job funding and building companies that are now ready for early-stage venture capital,” said John McIlwraith, VentureOhio chairman.  “But this success comes at a time when Ohio is experiencing a severe shortage of early-stage capital. Ohio-based venture capital firms lack the capacity to meet even 50% of this identified and growing need.  This lack of capital will likely slow growth for these companies, which are tremendous engines of job creation in our economy.”

The survey was conducted from April 16 to May 16. Respondents were asked to report confidentially on the current and future capital being raised by their portfolio companies, up to the end of 2015.  According to survey results, $85.27 million is needed in the angel stage while $437.85 million is needed in the early-stage of the funding continuum. The survey does not cover all Ohio entrepreneurial companies and therefore, the total capital needed by the state’s entrepreneurial community for job creation and economic growth is likely higher.

About VentureOhio:

VentureOhio is the unified voice for the capital sources and other organizations that finance or support high growth companies based in Ohio and that seek to make Ohio a preferred location for high potential entrepreneurial activity.

VentureOhio membership is open to investors, entrepreneurs, support organizations, service providers, educational and research institutions, corporations and individuals.

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