JobsOhio is planning to invest $50 million a year in fast-growing startups, many of them in the information technology and health care industries, as part of a newly focused growth capital initiative.
"We have a generational opportunity as we enter the post-Covid economy," J.P. Nauseef, president and CEO of JobsOhio, said March 29 during a virtual press conference.
"We hope this initiative along with others will help Ohio become the premier location in the Midwest for in-demand talent, growth capital and emerging businesses," Nauseef said.
The JobsOhio Capital Growth Initiative picks up where last year's JobsOhio innovation Fund to help young companies survive the pandemic and be ready to grow again left off.
"It's so exciting to see Ohio not limping out of the last year but really coming out focused and energized" partly because of last year's investments, said Alex Fischer, president and CEO of the Columbus Partnership, during the press conference.
Along with the state's innovation districts — of which Cincinnati led the way — the growth capital initiative is aimed at helping Ohio’s emerging entrepreneurial companies the capital they need to grow in Ohio.
"Ohio has lagged peer states in growth of venture capital funding," said Nauseef, who heads the state's private, nonprofit workforce development organization.
"As a result, we have missed out on opportunities to keep many successful Ohio startups in the state."
In March 2020, Gov. Mike DeWine challenged JobsOhio to invest in Ohio's growing companies to soften the impact of the pandemic, Nauseef said.
So among several efforts, JobsOhio invested in debt that can convert to equity in 38 early stage companies in all six of Ohio's regions, said Aaron Pitts, senior managing director for JobsOhio.
