SOURCE: CincyTech

CincyTech

June 23, 2011 11:15 ET

CincyTech Closes Fund II

$4.4 Million Seed Fund Will Invest in 10-12 New Startups

CINCINNATI, OH--(Marketwire - Jun 23, 2011) - Cincinnati-based seed-stage investor CincyTech has closed CincyTech Fund II LLC, a new fund that will enable CincyTech to continue its work of investing in technology-based startup companies.

CincyTech raised $2.4 million from Southwest Ohio partners and received $2 million from Ohio Third Frontier, bringing the total of CincyTech Fund II LLC to $4.4 million.

Like CincyTech Fund I LLC, Fund II will invest in companies focused on information technology, bioscience and advanced manufacturing that are based in or willing to move to Southwest Ohio. The new fund has the capacity for 10-12 new investments.

Local organizations that have committed to invest in Fund II are the Castellini Foundation, Cincinnati Children's Hospital Medical Center, Fort Washington Capital Partners, the Greater Cincinnati Foundation, the Carol Ann and Ralph V. Haile Jr. /U.S. Bank Foundation, and the Health Foundation of Greater Cincinnati, as well as several private investors.

CincyTech Fund I was launched by the Cincinnati USA Regional Chamber in 2007 with a $6 million investment from Third Frontier and $4.4 million from local corporations, foundations and institutions.

Fund I is now fully committed or reserved. Twenty-four companies received investments. So far, the companies have created more than 150 jobs, attracted $83 million in follow-on capital and other outside funding, and produced one exit that generated 10 times the initial investment.

"The timing of the Fund II's closing is crucial because we have such an active pipeline of potential investments," said Bob Coy, CincyTech president.

The Ohio Third Frontier program announced the grant awards in January. The maximum state award was $2 million.

About CincyTech
CincyTech is a public-private venture development organization that invests in startup businesses in high-tech industries in Southwest Ohio. With substantial support from Ohio Third Frontier and corporations, foundations, civic organizations and individuals here, it is stimulating the growth of venture-worthy companies in information technology, bioscience and advanced manufacturing.

About Ohio Third Frontier
Ohio Third Frontier is an economic development and jobs program that Ohio voters have twice overwhelmingly endorsed through passage of bond issues, most recently in May 2010 for $700 million. Through this program, Ohio's investment in technology, innovation and entrepreneurs has resulted in the formation of more than 500 new companies, the expansion of existing companies, and more than 48,000 new jobs for Ohioans.

Contact Information

  • CONTACT:
    Carolyn Pione Micheli
    communications director, CincyTech
    513-263-2728
    Email Contact