151
edits
Changes
Jump to navigation
Jump to search
�
Unedited Blog Post(Being peer-edited by Tay):
The local and state governments have been the ignitors for the Cincinnati ecosystem. Grant programs have historically provided the Cincinnati Children’s Hospital Medical Center, University of Cincinnati, and the Cincinnati Regional Chamber with funding for high tech projects. Companies such as Kroger, P&G and Macy’s have long called Cincinnati home but have been largely nonexistent in the ecosystem.
Resources UpTech is a Greater-Cincinnati tech accelerator program for data-driven startups created in Cincinnati
2012. Startups go through a six-month accelerator program and receive up to $50,000 during the program. The third and newest accelerator in Cincinnati is Ocean, a three-year-old accelerator with a five-month program that provides mentorship, monetary support in the form of a $50,000 note, branding, and legal advice.
The past few years have seen a remarkable increase in resources available for CincinnatiSeed stage investors such as CincyTech and Queen City Angels provide the ecosystem with capital. Accelerators now span Since 2001, CincyTech’s mission has been to strengthen the tristate regional economy through the creation and expansion of technology companies in Southwest Ohio, Kentucky, and Indiana. The Brandery, located in Cincinnati CincyTech is investing out of its fourth and founded in 2010largest fund, was inspired by the success of accelerators such as Capital Factory and TechStarsa $30. The Brandery offers a three-month program for 75 million seed stage companies that utilizes fund bigger than its first three funds combined. Queen City Angels is the already existing strengths region’s longest running angel group and is currently investing out of its largest fund of Cincinnati; branding, marketing, and design. Companies receive $50,000 in seed funding in return for 6% equity stake in the startup, office space, branding identity, legal support and more. The Brandery has been ranked a top ten accelerator in the nation10 million.
UpTech is
StartupCincy, a Greaterpublic-private partnership that provides seed stage funding for Cincinnati tech startups, maintains an exhaustive list of upcoming network, education, accelerator program and developer event in the city. It’s beloved by Cincinnati accelerators, seed stage investors, and entrepreneurs in the city.
One of Cincinnati’s most unique elements of its ecosystem is Cintrifuse. Established in 2011 with a goal to create a sustainable technology driven economy for datathe Cincinnati metropolitan area, Centrifuse manages a fund of funds. This fund of funds gives corporate investors access to over four-driven hundred startups created and creates a network of venture capital funds that invest in 2012Cincinnati startups. Startups go through a sixCentrifuse pairs start-month accelerator program ups with potential customers and receive up corporations to $50start-ups. Big companies like Kroger, USBank,000 during the programGreater Cincinnati Foundation and Duke Energy invest in Centrifuse because they depend on Cintrifuse’s help to source innovation for their businesses and grow the region’s startup ecosystem. The third and newest accelerator In turn, Cintrifuse invests in Cincinnati is OceanVC firms such as Allos Ventures, Mercury Fund, a threeand Sigma Prime Ventures. Cintrifuse also provides co-yearworking space and entrepreneur education.
Over-old accelerator with a fivethe-month program that provides mentorshipRhine, monetary support in the form a neighborhood of a $50Cincinnati is now home to Centrifuse,000 noteCincyTech, brandingand the Brandery. Coordination of the ecosystem creates cohesiveness. The companies going through the Brandery are only feet away from CincyTech’s capital, and legal advicewhich provides unique collaboration opportunities.
Success in Cincinnati
Seed stage investors such as CincyTech and Queen City Angels provide the ecosystem
CincyTech garnered considerable national attention after providing Lisnr, a company that has invented an ultrasonic technology for transmitting data through sound, with Stage A capital. CincyTech’s mission is Lisnr came to strengthen fruition aboard the regional economy through 2012 StartupBus, a competition where participants launch a company in 72 hours on a bus headed to Austin, Texas for the creation and expansion of technology companies in South by Southwest OhioFestival. CincyTech is investing out of its fourth and largest fundSince Lisnr came to fruition, a they have since received $30.75 10 million seed stage fund bigger than its first three funds combined. Queen City Angels is the region’s longest running angel group in Series B funding from Intel Capital and garnered accolades from CNBC’s Disruptor 50 list, Cannes Lions International Festival for Creativity, and is currently investing out of its largest fund of $10 millionFast Company’s Innovation by Design Awards.
CincyTech garnered considerable national attention after providing Lisnr, a company that has invented an ultrasonic technology for transmitting data through sound, with Stage A capital. Lisnr came to fruition aboard the 2012 StartupBus, a competition where participants launch a company in 72 hours on a bus headed to Austin, Texas for the South by Southwest Festival. Since Lisnr came to fruition, they have since received $10 million in Series B funding from Intel Capital and garnered accolades from CNBC’s Disruptor 50 list, Cannes Lions International Festival for Creativity, and Fast Company’s Innovation by Design Awards.
Not Not to be overlooked, Queen City Angels provided the initial stage funding for Assurex Health. Now ten years old, Assurex grew out of research at Cincinnati Children’s Hospital Medical Center and the Mayo Clinic. Its singular product is the GeneSight Test, which analyzes twelve genes that influence mental health and psychoactive drugs that treat a spectrum of mental-health disorders. Myriad Genetics purchased Assurex Health in April 2016 for $225 million with another $185 million to come when performance-met stipulations are met.
StartupCincy, a public-private partnership that provides seed stage funding for Cincinnati startups, maintains an exhaustive list of upcoming network, education, accelerator and developer event in the city. It’s beloved by Cincinnati accelerators, seed stage investors, and entrepreneurs in the city.
One of Cincinnati’s most unique elements of its ecosystem is Cintrifuse. Established in 2012 with a goal to create a sustainable technology driven economy for the Cincinnati metropolitan area, Centrifuse manages a fund of funds. This fund of funds gives corporate investors access to over four-hundred startups and creates a network of venture capital funds that invest in Cincinnati startups. Centrifuse pairs start-ups with potential customers and corporations to start-ups. Big companies like Kroger, USBank, the Greater Cincinnati Foundation and Duke Energy invest in Centrifuse because they depend on Cintrifuse’s help to source innovation for their businesses and grow the region’s startup ecosystem. In turn, Cintrifuse invests in VC firms such as Allos Ventures, Mercury Fund, and Sigma Prime Ventures. Cintrifuse also provides co-working space and entrepreneur education.
Over-the-Rhine, a neighborhood of Cincinnati is now home to Centrifuse, CincyTech, and the Brandery. Coordination of the ecosystem creates cohesiveness. The companies going through the Brandery are only feet away from CincyTech’s capital, which provides unique collaboration opportunities.
Venture CapitalThe largest barrier to Cincinnati’s emergence as an entrepreneurial ecosystem is the absence of venture capital entering the system. Two indicators of the health of an ecosystem are the number of first rounds and the amount of venture capital entering a system. The number of Cincinnati first rounds has been increasing. In 2012, there was an average of one first round per year. In 2014, Cincinnati experienced its larges number of first rounds ever, with nine. It appears the the ecosystem is leveling out at an average of five first rounds per year. It’s generally held that a stable ecosystem closes around thirty to thirty-five deals a year. Cincinnati falls far below this.
The second component of a healthy ecosystem is the VC entering the system. Despite an increase in first rounds, the seed, early stage, and later stage VC entering Cincinnati, current VC levels are not indicative of a successful ecosystem. Cincinnati VC peaked in 2002 at $343 million. The closest the ecosystem came to meeting 2002 VC levels was $235 million in 2014. The average VC entering the system is $139 million per year. Compared to VC levels of emerging ecosystems like Austin, Texas or Denver, Colorado, Cincinnati’s VC is weak and not supportive of an ecosystem.
No data—most recent VC data is from 2014 and has a three-year rolling average of $55 million. Falls far behind Austin, who is the leader with a three-year rolling average of $1.33 billion.
Untapped Potential
Untapped PotentialCompared to Austin’s average number of 29.3 patents per 10,000 employees, Cincinnati has an average of 5.8. However, Cincinnati only sits behind Austin, Raleigh, Minneapolis and Detroit in average number of patents. According to _____, The University of Cincinnati has more invention disclosures per research dollar than MIT, but fewer patents due to the lack of resources According to ____, the University of Cincinnati has more invention disclosures per research dollar than MIT, but fewer patents due to lack of resources.
It’s generally held that a stable ecosystem closes around thirty to thirty-five deals a year. Cincinnati falls far below this. For an ecosystem that really only started in 2010 with the establishment of the Brandery, Cincinnati is beginning to establish some of the resources it will need in order to emerge as an entrepreneurial ecosystem. However, VC and the number of first rounds needs to increase to help grow the ecosystem.
no edit summary
5 Custom Report: CincinnatiRound (Columnar) - Save As:
E:\McNair\Projects\Ecosystem\CincinnatiRound.txt
Billing Ref # : 2038623
Capture File : riceuniv.2038623
Introduction
The ten Fortune 500 companies that call Cincinnati provide a unique advantage for the emerging ecosystem. They have the potential to ignite the ecosystem, providing a unique narrative to a city not known not for high tech development, but for branding, marketing and design. In 2015 Cincinnati jumped from 35th place to 16th out of 40 metropolitan areas for biggest positive shifts in rank across entrepreneurship in the city, state, and national levels. Several areas of the ecosystem are on a good trajectory, but many lack sufficient capabilities and resources that are likely inhibiting Cincinnati’s ecosystem development.
History of Entrepreneurship
The local and state governments have historically been the ignitors for the Cincinnati ecosystem. Individual grant programs have historically provided the Cincinnati Children’s Hospital Medical Center, University of Cincinnati, and the Cincinnati Regional Chamber with funding for high tech projects. Companies such as Kroger, P&G and Macy’s have long called Cincinnati home but have been largely nonexistent in the ecosystem.
Resources in Cincinnati
The past few years have seen an increase in entrepreneurial resources available for Cincinnati. Accelerators now span the tristate of Ohio, Kentucky, and Indiana. The Brandery, located in Cincinnati and founded in 2010, was inspired by successful accelerators such as Capital Factory and TechStars. The Brandery offers a three-month program for seed stage companies that utilizes the already existing strengths of Cincinnati; branding, marketing, and design. Companies receive $50,000 in seed funding in return for 6% equity stake in the startup, office space, branding identity, legal support and more. The Brandery has been ranked a top ten accelerator in the nation.
Venture Capital
