Ohio's Start-Up Success Creates New Capital Needs

COLUMBUS, Ohio, Oct. 6, 2014 /PRNewswire/ -- Investors put $149 million to work with Ohio entrepreneurial companies in 2013, according to a report released today by VentureOhio.  Ohio VentureReport 2013, the first statewide overview of venture investing in the state, is based on responses from 48 investors, 34 of which are Ohio-headquartered.  Investors made 156 investments in 129 Ohio companies.

"This report shows a vibrant community of start-up entrepreneurs and investors that is creating value for their stakeholders and the Ohio economy," said John McIlwraith, Chairman of VentureOhio.  "The pipeline of new companies will only increase, due to the success of this community, aided by support from Ohio Third Frontier.  The question now is how to fill the capital gap between what will be needed by these growing companies and what Ohio-based venture investors have available.  This is the challenge."

Ohio VentureReport 2013 shows that investors have $260 million in capital available for follow-on investments in existing companies and for new investments.  In an earlier report issued in June 2014, VentureOhio stated that there was a $523 million need for capital by the end of 2015 to fund growth in Ohio's seed/start-up and early stage companies.

"We are pleased to contribute our first annual report to the public policy discussion of how to support Ohio's entrepreneurs," said Lisa Delp, Chair of VentureOhio's Research Committee.  "Job creation by new companies is an important part of a healthy state economy.  Our report shows that this process is alive and well in Ohio, but that it faces a severe shortfall in capital to fuel growth."

The report was based on an investor survey conducted by VentureOhio in June and July of this year.  The investment and capital needs surveys will be conducted annually, with the report on 2014 projected for around the end of the first quarter in 2015.  The report has been posted on the VentureOhio website, www.ventureohio.net.

About VentureOhio:
Founded in 2013, VentureOhio is the unified voice for the capital sources and other organizations that finance or support high growth companies based in Ohio and that seek to make Ohio a preferred location for high potential entrepreneurial activity.  VentureOhio collaborates with state and local officials, major corporations, foundations, universities, and service providers to strengthen Ohio's entrepreneurial ecosystem.

SOURCE VentureOhio