Changes

Blog Post (Being peer-edited by Tay):

The ten Fortune 500 companies that call History of Entrepreneurship Local and state governments have historically helped ignite the Cincinnati provide a unique advantage for the emerging ecosystem. They have Individual grant programs provide the potential to ignite Cincinnati Children's Hospital Medical Center, University of Cincinnati and the ecosystem, providing a unique narrative to a city not known Cincinnati Regional Chamber with funding for high -tech developmentprojects. Until recently, but the Fortune 500 companies have been largely nonexistent in the ecosystem. Accelerators in Cincinnati The past few years have seen an emergence in entrepreneurial resources available for brandingCincinnati. Accelerators now span the tristate area of Ohio, marketing Kentucky and designIndiana. Several areas of Less than ten years ago, you would have been pressed to find one accelerator in the ecosystem are on a good trajectory, but many lack sufficient capabilities and resources that are likely inhibiting Cincinnati’s ecosystem developmentregion.

History The Brandery has a portfolio of twenty-nine startups. Notably, the Brandery accelerated FlightCar, "a marketplace that allows owners flying out of EntrepreneurshipThe local an airport to rent out their cars to arriving travelers" that was acquired by Mercedes Benz and state governments have historically been Skip, "a mobile checkout solution that allows you to scan items as you go through the ignitors for store and skip the checkout line." The Brandery has been ranked a top-ten U.S. accelerator. Launched in 2012, UpTech is a Greater Cincinnati ecosystemtech accelerator program for data-driven startups. Individual grant programs have historically provided Located across the river from Cincinnati Children’s Hospital Medical Centerin Covington, Kentucky, UpTech was established as an effort by Northern Kentucky University College of Informatics and the Greater Cincinnaticommunity. Up to ten startups go through a six-month accelerator program and receive up to $50,000 during the program. UpTech differs from traditional accelerators since it has hundreds of support staff in the form of community volunteers and interns from Northern Kentucky University. Successful UpTech startups include online walking-tourism planning platform, Touritz, and software and data management company, Liquid. The third and newest accelerator in Cincinnati is three-year old faith-based Ocean Accelerator. Ocean runs a five-month program that provides mentorship, monetary support in the form of a $50,000 note, branding and legal advice. As the only faith-based accelerator in the nation, Ocean's curriculum features weekly bible studies. Alumni of Ocean include Casamatic, a real estate technology company that increases buyer engagement, and Cerkl, a startup that increases engagement. University Resources The University of Cincinnati Regional Chamber and Xavier University provide student and researcher accelerator programs. The University of Cincinnati’s Technology Accelerator for Commercialization provides full-time faculty and staff with funding the opportunity to develop intellectual property at the University of Cincinnati. In order to be considered eligible for high tech projects. Companies such as Krogerthe TAC program, P&G the technology must be developed at the University of Cincinnati and Macy’s have long called Cincinnati home but have been largely nonexistent in a focus on commercialization. Start-up companies are not eligible for the ecosystemTAC program.

Resources in CincinnatiThe 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 Cincinnati’s Venture 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. Woes

UpTech Despite these resources, the ecosystem is not prCincinnatiFirstRoundoducing enough successful start-ups to be considered a Greaterstable ecosystem. It’s generally held that a solid ecosystem closes around thirty to thirty-five deals a year. Cincinnati tech accelerator program for data-driven startups created in 2012falls far below this. Startups go through a six-month accelerator program and receive up to $50,000 during While the program. The third and newest accelerator in number of Cincinnati is Oceanfirst rounds has been increasing, a three-year-old accelerator with a five-month program it appears that provides mentorship, monetary support in the form ecosystem is leveling out only an average of a $50,000 note, branding, and legal advicefive first rounds per year.

Seed stage investors such The largest barrier to Cincinnati’s emergence as CincyTech and Queen City Angels provide an entrepreneurial ecosystem is the ecosystem with absence of venture capitalentering the system. Since 2001Despite an increase in first rounds, CincyTech’s mission has been CincinnatiVC current VC levels are not indicative of a successful ecosystem. Cincinnati VC peaked in 2002 at $343 million. The closest the ecosystem came to strengthen the regional economy through the creation and expansion of technology companies meeting 2002 VC levels was $235 million in Southwest Ohio2014. CincyTech The average VC entering the system is investing out of its fourth and largest fund, a $30.75 139 million seed stage fund bigger than its first three funds combinedper year. Queen City Angels Compared to VC levels of emerging ecosystems like Austin or Denver, Cincinnati’s VC is the region’s longest running angel group weak and is currently investing out not supportive of its largest fund of $10 millionan ecosystem.


StartupCincy, a publicSeed-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. 
Stage Funding

One Cincinnati does have stable seed-stage investors, which bodes well for the future of Cincinnati’s most unique elements of its the ecosystem. CincyTech, a public-private seed-stage investor, was the first effort by the local Cincinnati government to establish an entrepreneurial ecosystem is Cintrifuse. Established in 2011 with a goal 2001, CincyTech’s mission has been to create a sustainable technology driven strengthen the regional economy for through the Cincinnati metropolitan area, Centrifuse manages a fund creation and expansion of fundstechnology companies in Southwest Ohio. This fund CincyTech is investing out of funds gives corporate investors access to over four-hundred startups its fourth and creates largest fund, a network of venture capital funds that invest in Cincinnati startups$30. Centrifuse pairs start75 million seed-ups with potential customers and corporations to start-upsstage fund bigger than its first three funds combined. 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 Queen City Angels is the region’s startup ecosystem. In turn, Cintrifuse invests in VC firms such as Allos Ventures, Mercury Fund, longest running angel group and Sigma Prime Ventures. Cintrifuse also provides co-working space and entrepreneur educationis currently investing out of its largest fund of $10 million. 


Over-StartupCincy is self described as "the-Rhine, driving force behind [Cincinnati's] new economy...a neighborhood rallying cry." In addition to maintaining an exhaustive list of Cincinnati is now home to Centrifuseupcoming network, CincyTecheducation, accelerator and developer events in the Branderycity, Startup Cincy connects venture capitalists and angel investors to startups. Coordination StartupCincy is credited by the Cincinnati Business Courier as "one of the ecosystem creates cohesiveness. The companies going through most influential groups leading the Brandery are only feet away from CincyTech’s capital, which provides unique collaboration opportunitiesrenaissance of Cincinnati's startup community. "


Success One of Cincinnati’s most unique elements of its ecosystem is Cintrifuse. Established in 2011 with the goal of creating a sustainable technology driven economy for the Cincinnatimetropolitan 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 works with both investors and startups to make lasting connections, pairing startups with potential customers and corporations with startups that need mentorship. In addition, Centrifuse offers co-working space in Over-the-Rhine and entrepreneur focused educational programs.


CincyTech garnered considerable national attention after providing LisnrBig companies like Kroger, a company that has invented an ultrasonic technology for transmitting data through soundUSBank, with Stage A capital. Lisnr came to fruition aboard the 2012 StartupBus, a competition where participants launch a company Greater Cincinnati Foundation and Duke Energy invest in 72 hours Centrifuse because they depend on a bus headed Cintrifuse’s help to Austin, Texas source innovation for their businesses and grow the South by Southwest Festivalregion’s startup ecosystem. Since Lisnr came to fruitionIn turn, they have since received $10 million Cintrifuse invests in Series B funding from Intel Capital VC firms such as Allos Ventures, Mercury Fund and garnered accolades from CNBC’s Disruptor 50 list, Cannes Lions International Festival for Creativity, Sigma Prime Ventures. Cintrifuse also provides co-working space and Fast Company’s Innovation by Design Awardsentrepreneur education.



Not to be overlooked, Queen City Angels provided Over-the initial stage funding for Assurex Health. Now ten years old-Rhine, Assurex grew out a neighborhood of research at Cincinnati Children’s Hospital Medical Center , is now home to Centrifuse, CincyTech and the Mayo ClinicBrandery. Its singular product is The companies going through the GeneSight TestBrandery are only feet away from CincyTech’s capital, 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 metprovides unique collaboration opportunities.


Venture 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 for the South by Southwest Festival. Since Lisnr's establishment, they have received $10 million in Series B funding from Intel Capitaland garnered accolades from CNBC’s Disruptor 50 list, Cannes Lions International Festival for Creativity and Fast Company’s Innovation by Design Awards.

The largest barrier Not to Cincinnati’s emergence as an entrepreneurial ecosystem is be overlooked, Queen City Angels provided the absence of venture capital entering the systeminitial stage funding for Assurex Health. 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 2012Now ten years old, there was an average Assurex grew out of one first round per year. In 2014, research at Cincinnati experienced its larges number of first rounds ever, with nine. It appears Children’s Hospital Medical Center and 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 thisMayo Clinic.

The second component of a healthy ecosystem Its singular product is the VC entering the system. Despite an increase in first rounds, the seed, early stageGeneSight Test, which analyzes twelve genes that influence mental health and later stage VC entering Cincinnati, current VC levels are not indicative psychoactive drugs that treat a spectrum of a successful ecosystemmental-health disorders. Cincinnati VC peaked Myriad Genetics purchased Assurex Health in 2002 at April 2016 for $343 225 million. The closest the ecosystem came to meeting 2002 VC levels was with another $235 185 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 ecosystemcome when performance-met stipulations are met. 



Untapped Potential
Potential

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 need to increase in order to help grow the make Cincinnati an attractive ecosystemfor startups and investors.