Editor’s Note: This story was written live on Techstars Startup Week Day 3 and published today as a quick retrospective. Expect more event coverage throughout the week. Check out our previous reports here.
With the release of Powderkeg’s 2018 Cincinnati Tech Census, CEO Matt Hunckler hosted a panel of Cincy Tech and StartUp Cincy influencers at Union Hall. “#Unvalley: New Insights and the Trends Powering Cincinnati’s Startup Success” showcased the positive things that are currently happening in Cincinnati's startup and tech ecosystem as highlighted by the census' results.
Cintrifuse Vice President of Communications Eric Weissmann outlined some of these positive elements, noting especially the city's affordability for residents and entrepreneurs alike. Another boon is the region's stability, thanks to large corporations (like P&G, Kroger) and area research institutions. Cincinnati's vibrant art community and food scene also contribute to a more balanced lifestyle for its working population, allowing hustling entrepreneurs an opportunity to enjoy something besides build their startup.
While the area is starting to get attention for all its resources and attractions, Weissmann added that Cincinnati wasn't built in a day. It's taken decades.
“We play a small part in connecting those dots, but the dots were already here,” he said.
Weissmann credited trailblazers like HCDC and The Brandery as just of few of those institutions that have been building quietly in the background. The introduction of Cintrifuse added a “lifeguard in the pool” that is #StartupCincy, ultimately allowing big corporations, accelerators, startups, talent and investors to connect to each other.
Inc. columnist Jeff Barrett also joined Weissmann on stage, adding his insight as a tech writer and consultant who has had access to major tech scenes around the country.
According to the Tech Census, Cincy-based tech companies are growing 56 percent faster than companies based elsewhere in the country, without the help of those same companies' more robust marketing and sales budgets. Barrett attributed this growth to the community, mentorship and local infrastructure of the ecosystem, and how its gender diversity helped companies expand.
Hunckler agreed. “If you have more diversity, you’re going to grow faster,” he said.
The topic pivoted towards funding.
Ann Mooney, an investor at Queen City Angels, took to the stage next. She talked a bit about her work at Procter & Gamble, as well as time spent mentoring at The Brandery. During that experience, she realized that she didn’t know that much about the funding aspect of running a startup, and that she wanted to grow her perspective.
So, she joined QCA with a junior membership. It was an opportunity afforded to her through its recently launched program that looks to help diversify Cincinnati’s angel investor pool. It showed her another positive element about Cincy's ecosystem: When startups get investment, they not only get a check, but they also get access to industry experts, as many former P&G and Kroger executives with considerable business acumen get involved in funding ventures.
“We play a small part in connecting those dots, but the dots were already here."
Connetic CIO Kyle Schlotman added his perspective on seed money and its availability for area startups. While he said didn't think access to seed funding was a problem for the area, Schlotman added that the investor community hopes to improve the amount of late-stage capital.
Tarek Kamil, the CEO and Founder of Cerkl, said that all of Cincinnati's resources had come a very long way from when he started a business in the city 20 years ago.
“There was nothing, literally nothing,” he said, likening his and Cincinnati's journey of growth to that of a marathon.
As a result, most people thought he was crazy for helming his own company and wondered why he wasn’t working at one of Cincy’s bigger organizations. Kamil's work paid off, however, when he sold his first company to Fox Interactive.
After the sale, he said, he decided to keep his offices in Cincinnati; it was more affordable and more enjoyable to live, and things were starting to change.
For example: The Brandery was “revolutionary for sleepy old Cincinnati" when it came to town around ten years ago. Cintrifuse wasn't too long behind it, and that was a game changer, he added.
Now, the marathon “is downhill with the wind at our backs,” Kamil said.
