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. Those are:
- Enable Injections, of Cincinnati, $215 million in January.
- Astronomer, of Cincinnati, $213 million in March. Southwest Ohio has seen three nine-figure rounds in the past seven months, sister publication Cincinnati Business Courier reported.
- Society Brands, of Canton, $204 million in March, the Cleveland Business Journal reported.
Central Ohio, however, 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 region kicked off the year with a $57 million private equity round for AndHealth, a telehealth startup for treating chronic disease. The new business by CoverMyMeds founder Matt Scantland emerged from seven months of stealth mode in February.
The other biggest Columbus rounds so far in 2022:
- Triple Whale, helping independent brands track and analyze performance metrics on the Shopify platform, $27.7 million.
- PriorAuthNow, which makes software to help hospitals automate insurers' prior authorization of payment for procedures, $25 million.
- Prevedere, predictive analytics software for business forecasting, $25 million.
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.
