Cincinnati startup seed capital firm CincyTech has raised millions of dollars for its fifth investment fund, but it’s aiming to raise a lot more.
CincyTech, based in the University of Cincinnati’s 1819 Innovation Hub in Avondale, raised $18.25 million a little more than a year into its efforts to raise its fifth investment fund, according to a company filing last week with the U.S. Securities and Exchange Commission.
But CincyTech is still less than halfway to its stated goal of raising $50 million, according to the filing.
CincyTech CEO Mike Venerable declined to comment on the fund. That’s a common response from people involved in raising investment funds due to regulatory restrictions.
CincyTech began raising the fund in November 2019, according to a previous SEC filing.
CincyTech’s $50 million target would easily make this its largest fund. Its fourth fund of $31 million is its largest investment fund to date. CincyTech has raised $57 million combined in its four previous funds. But it remains to be seen how much it will raise, given CincyTech focused on helping its portfolio companies last year through the pandemic.
National Venture Capital Association data shows venture capital firms raised a record amount of money in 2020. U.S. venture capital funds raised a record $73.6 billion last year, breaking the record of $68.1 billion in 2018, according to the Pitchbook-NVCA Venture Monitor.
CincyTech uses the money it raises in its funds to invest in early-stage startups mainly in Greater Cincinnati. It has invested $68 million directly in companies since CincyTech began operating in its current format in 2006. Its companies have received $1 billion in co-investment alongside CincyTech.
CincyTech completed what’s known in the investment fundraising world as a first close last year. That enables it to began calling in commitments from investors and begin investing money raised for the fund.
CincyTech has already invested in companies including business networking site developer Peerro, biotech firm Eikonoklastes Therapeutics and drug development company Kurome Therapeutics.
CincyTech is a key cog in providing money and expertise for the local startup community.
“The more CincyTech rolls, the faster our innovation economy grows,” Pete Blackshaw, CEO of Over-the-Rhine-based startup catalyst group Cintrifuse, told me when CincyTech began raising the fund in November 2019. “Their new funding effort is a huge momentum generator for our startup economy, and it builds on a great foundation of CincyTech wins over the years.”
