Venture capital investment and tech company IPOs nationwide have cooled off so far in 2022 after a scorching 2021, but Ohio appears to be bucking the trend, especially in Cincinnati.
The nearly $71 billion combined value of VC investments in startups and later-stage tech for the first quarter was lower than any quarter of record-breaking 2021 – but still higher than the levels of prior years, according to the latest Venture Monitor report from PitchBook and the National Venture Capital Association. The national totals are from a preview of the full report to be released Thursday.
The estimated 4,822 deals from January to March was a record high – indicating smaller investments across more companies.
IPOs for venture-backed companies have slowed drastically this year after many newly minted stocks struggled last year, including Columbus-based Root Inc.
Ohio appears to be bucking the trend, mainly because of three mega-rounds so far that alone total more than the state's $454 million in the first quarter 2021. Two of those rounds — Enable Injections ($215 million) and Astronomer ($213 million) — were in Cincinnati. The other was Canton-based Society Brands for $204 million, according to the Cleveland Business Journal.
Central Ohio, the state's stronghold for big funding rounds, appears to have markedly slowed in the quarter after being responsible for $1.55 billion of the state's record $2.4 billion in VC investment last year. Through March, startups have raised just over $155 million, according to Columbus Business First research of announced rounds and regulatory filings.
The state's only IPO so far this year is Cincinnati's Blue Water Vaccines in February, which has seen its share price drop 80% through early April, the Courier reported.
