Cincinnati startup catalyst Cintrifuse has tapped a familiar face for a key leadership role within the organization as the group prepares to launch its third fund – with a goal of increasing its direct investments in local early-stage tech startups and more.
J.B. Kropp, one of the pioneers of Cincinnati’s startup ecosystem and co-founder of the Brandery, once a nationally ranked accelerator, will serve as the new managing director for Cintrfuse’s syndicate fund. Cintrifuse announced the hire Wednesday afternoon. Kropp’s first day is April 17.
As managing director, he will lead the nationwide launch of Fund III while also overseeing the group’s previous two funds, which are used to invest in early-stage venture capital firms and to grow Cincinnati’s startup scene.
Cintrifuse declined to disclose the target amount for the new fund, citing compliance restrictions; the group’s investment arm currently has more than $180 million in assets under management.
Kropp succeeds Oleg Kaganovich, who served in the role briefly in 2021. Sarah Anderson, Cintrifuse’s former fund director who moved to Colorado, has been managing Fund I and Fund II in the interim.
Cintrifuse cited Kropp’s strong track record in the community as a key factor in the hire. A 13-member committee led the search. Kropp will report directly to Cintrifuse CEO Pete Blackshaw and a separate fund advisory board.
“J.B. brings a broad, deep network, and his experience aligns with our Fund III strategy pillars,” Blackshaw said in a release. “He’s passionate about Cintrifuse’s mission to drive more investment and talent to Cincinnati.”
Kropp in 2010 helped launched the Brandery alongside Rob McDonald and Dave Knox. The accelerator, in its heydey, was a huge driver and put Cincinnati on the map as a startup hub both nationally and internationally.
He’s also served as co-manager of Vine Street Ventures, a regional early-stage investment fund, and is the co-founder and a board member at Main Street Ventures, a nonprofit that offers programming and equity-free funding to startups across the Tri-State. He has past leadership roles at Gorilla Glue, E.W. Scripps and Twitter.
Cintrifuse’s investment approach to date has been similar to that of a mutual fund.
It collects a pool of money from corporate, government, academic and private investors (including Procter & Gamble, Kroger, Mercy Health, Smuckers, FIS and others) and distributes those funds to venture capital fund managers. Those have included Cincinnati-based Refinery Ventures, Seattle-based Madrona, New York’s Greycroft and others.
Cintrifuse also has made five direct Cincinnati investments in Vndly (which was acquired by Workday in 2021 for $510 million); Enable Injections; Lisnr; Everything But The House and Assurex Health (which sold to Myriad Genetics in 2016 for more than $300 million).
Cintrifuse said Fund III will take a new hybrid approach in its support of startups "from ideation to growth,” combining its traditional "fund-of-funds" model with the addition of a venture studio project plus increased direct investment in local tech startups.
Fund III will balance both syndicated investments (investments in other venture capital firms) and direct startup investments with the goal of attracting national venture capital firms to Cincinnati.
The fund will focus on sectors such as sustainability, supply chain and fintech while also supporting diverse founders, Cintrifuse said.
The goal is to make Greater Cincinnati the fastest-growing startup hub in the Midwest and a top U.S. innovation center.
“I’m excited to build upon the success Cintrifuse fund management has achieved with its prior funds,” Kropp said in a statement. “With a clear new vision, we will look to make a big impact on Cincinnati’s entrepreneurial ecosystem while targeting to invest in national top-performing venture capital funds.”
