A Cincinnati-based venture capital firm appears ready to launch its second fund after securing a key investment from a local partner and close-knit neighbor.
Refinery Ventures, which funds post-seed or Series A stage startups, received an investment from Cintrifuse and its syndicate fund, Cintrifuse said in a release on Tuesday.
The amount was not disclosed, and Refinery Ventures managing partner Tim Schigel declined to comment. That’s typical in these situations, since federal regulations restrict publicity when companies are fundraising. But Pete Blackshaw, CEO of Cintrifuse, an Over-the-Rhine startup catalyst, said it shows further momentum for Cincinnati’s startup ecosystem.
Cintrifuse, by design, can’t invest in first-time funds, so a commitment on its part would put Refinery in a prime position to launch its second effort.
Cintrifuse said it considers three factors when gauging an investment opportunity such as this:
- A firm’s performance
- The ability to “ignite corporate innovation” for Cintrifuse’s big company partners, who invest in the syndicate fund, among others
- Regional engagement.
Refinery has performed very strongly in those categories, Sarah Anderson, Cintrifuse fund manager, said in the release.
“We’ve been watching Refinery from the moment Tim launched ‘Fund I.’ He has been a transformative venture investor in the region, identifying high-growth startups and driving early performance,” she said.
Refinery and Cintrifuse have maintained a close relationship since Schigel, a founding member of Cintrifuse who helped create the syndicate fund during his tenure there, launched Refinery in 2017. The firm maintains office space alongside Cintrifuse in Union Hall. Refinery’s sweet spot is post-seed startups working in IT, human capital, digital health and media and marketing.
Drop-off rates are high for companies in this phase of fundraising, but Refinery has developed one of the strongest portfolios in the Midwest.
Refinery’s initial fund, $15 million, helped back companies like Astronomer, Tealbook, Engage Talent, Fooji, Folio Photonics and Halo Health. In 2019, Refinery celebrated a rare, early exit for an inaugural fund when Engage Talent, a predictive analytics and AI software company, was acquired by Workforce Logiq.
Three of nine ventures in the Refinery portfolio are Cincinnati-based or have Cincinnati offices. Halo Health and Astronomer were also named Cincy Inno “Startups to Watch” for 2021.
“This investment demonstrates our commitment not only to engaging founders and investors from outside Cincinnati, but also to support those who are doing great things right here in Cincinnati,” Blackshaw said. “It’s also urgent, because there has never been a time when the accelerated development of a tech-based innovation economy has been more important to our region.”
