Ohio Venture - OVA Review Newsletter
News from the Ohio Venture Association meeting on May 17, 2013

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Keynote Address:

The Ohio Venture Capital Landscape

Paul Cohn

Managing Director
The Ohio Capital Fund

The manager of the fund established by the State of Ohio to catalyze early-stage investments in new companies came to the May OVA luncheon bearing both good news and bad news.

The bad news: venture capital isn't keeping up with the market's needs.

"There are some clouds on the (venture capital) horizon, but the clouds aren't specific to Ohio," he said. "The clouds are on a national basis. Early-stage capital hasn't nearly kept pace with the amount of angel and seed funding in companies…We've done a tremendous job seeding companies, but our early-stage capital is not keeping up."

Nationally, the VC industry is becoming increasingly concentrated. Last year, half of the venture capital was raised by just ten funds, most located on the coasts. "It's tough to raise a fund in Ohio now," he said. "Of the 26 funds we invest in, over half of them are out of funds now."

On the other hand, he said the angel investing community has been a particular bright spot. "I think Ohio's got the most robust angel community that works together, and syndicates deals across the state."

He noted that since its inception, the Ohio Fund—a fund of funds—has invested about $600 million in 70 companies in the state. That includes $124 million invested in 40 companies in Northeast Ohio, which has generated about an additional $200 million in subsequent add-on funding. Statewide, the program helped create or retain more than 2,500 jobs worth about $500 million in payroll last year, he said. That in turn translates into about $20 million in payroll taxes for Ohio.

In fact, the official numbers may understate the real situation, he noted. One Ohio State University study put the statewide number at $419 million in early stage investments made in Ohio companies between 2006 and 2012, or the period spanning the state's Third Frontier program.

"The value of our portfolio has increased for the last ten quarters in a row. The ecosystem has matured and you're starting to see the value of these companies rise."

More information:

Webcast from the Meeting:

Click on the image below to view the entire presentation as video.

Video Webcast from Recent Meeting
Webcasts produced by Tom Kondilas.

OVA's Video Archive is Online:

OVA is pleased to offer an archive of program videos to its website. You'll find the full video record of most OVA formal programs since 2008 at www.ohioventure.org/video-archive.html.

Upcoming Meeting Dates:

  • June 14, 2013
    Venture of the Year
 

See complete details and registration for these events.
 

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