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Growing a Startup Powerhouse

New leaders at four Cincinnati startup organizations are upping their game to provide the region's best and brightest entrepreneurs with more resources.

by Sarah M. Mullins

Cincinnati has made a name for itself over the past 10-15 years as a Midwest hub for startups, with the surge in entrepreneurial activity transforming the region’s economic landscape. The journey to becoming a startup hotspot leveraged strategic partnerships with universities, businesses, and government to build key relationships, provide mentorship, and cultivate funding opportunities that are harder to come by outside of the East and West coasts.

The local ecosystem boasts impressive numbers, with more than 450 startups and a total of 5,148 jobs created, along with $680 million in total funding raised by area startups just in 2022. Cincinnati sits 41st in the U.S., according to Startup Blink’s Startup Ecosystem Index rankings.

Many across the region argue that Cincinnati is perfectly positioned for additional success thanks to the combination of access to a variety of higher education institutions, seven Fortune 500 companies, and award-winning healthcare systems. Organizations like CincyTech, Cintrifuse, Main Street Ventures, and the University of Cincinnati’s 1819 Innovation Hub are at the forefront of this transformation—providing support to aspiring entrepreneurs, strengthening the region’s development and attraction for talent and future innovators, and raising and attracting capital.

All four organizations, coincidentally, have changed leadership recently. Each key executive shares his or her thoughts on how to boost the region’s startup scene to the next level.


CincyTech

Native Cincinnatian Emma Off (pictured above) took the CEO reins at CincyTech in January following a legal career focusing on private capital and mergers and acquisitions.

Her new role is a natural mix of things she’s passionate about: supporting founders, venture development and economic growth, and private capital activation and deployment.

Off’s background in complex reorganizations, mergers, and acquisition at Thompson Hine align with the complex nature of startups and the capital challenges that Cincinnati startups face. “In private practice, I saw firsthand the limited organized private capital infrastructure in our region,” she says. “I also saw economic, job, and population growth data regarding our metropolitan statistical area, and I grew concerned that if more private capital was not activated around high-growth business opportunities, we would continue to fall behind peer cities located in the Midwest.”

The biggest hurdle all first-time founders face is a lack of capital, which is particularly true here. Based on Pitch-Book and Census data, Cincinnati ranks behind Columbus, Cleveland, Indianapolis, Pittsburgh, Detroit, Chicago, and Minneapolis for available seed funding. Off says for every dollar of research and development spent at research institutions in Ohio, including healthcare systems, there’s not even 10 cents in private capital to monetize and capitalize on such research. “Many of the companies we invest in are commercializing novel intellectual property from a research institution or abandoned by a big company,” she says. “CincyTech helps match these big ideas with experienced executives to help commercialize the idea.”

Since 2007, CincyTech has invested in 90 portfolio companies across life sciences and technology sectors and invested $90 million in portfolio companies, which has attracted $1.8 billion in co-investment. Its involvement with early-stage life sciences and healthcare investing remains important, since six of the top 10 employers in Cincinnati are healthcare or research organizations.

CincyTech portfolio company Enable Injections is one of many Cincinnati-based private and public research organizations that have received more than $365 million in venture capitalist funding and more than $1.3 billion in National Institutes of Health (NIH) funding. CincyTech leverages an experienced team as the only early-stage investor in Ohio that’s supported by two PhDs, two former healthcare executives, a pharma executive, a former digital health executive, and graduate students from the University of Cincinnati.

“CincyTech will continue to focus on where we’ve demonstrated a right to win,” says Off. “That’s being a key launch partner to novel innovations and technologies, particularly in life sciences and healthcare.”

In addition to providing capital, CincyTech plays a vital role in activating deal flow, providing mentorship to first-time founders, and educating them on market trends, scalability, and exit opportunities. Its portfolio companies have created 1,500 jobs with an average salary of $100,000, and 34 percent are minority- or female-founded or led. “CincyTech believes passionately in supporting underrepresented founders to promote a more inclusive entrepreneurial community in Cincinnati,” says Off, who succeeded longtime leader Mike Venerable in January.

CincyTech aims to cement its position as a leader in early-stage life investing, leveraging Cincinnati’s strengths in the healthcare and life sciences sector. “At the end of the day, it all goes back to helping find, fund, grow, and exit world-changing ideas,” says Off. “Ideas that will change how drugs are delivered, how diseases are treated, how illnesses and injuries are diagnosed, how information is aggregated and managed to change patient outcomes. We will continue to work with our ecosystem partners to activate more capital in our region and get much-needed capital to high-growth businesses.”


Cintrifuse

J.B. Kropp

Founded by executives from one of Cincinnati’s Fortune 500 companies, Procter & Gamble, Cintrifuse has been a cornerstone of Cincinnati’s startup ecosystem since day one. The organization is dedicated to innovation and entrepreneurship in a range of avenues, including the newly launched Venture Velocity program that will accelerate the growth of startups. The eight-week cohort-based program is key to connecting startups with essential resources, mentors, and investors crucial for their success in Cincinnati’s startup ecosystem.

“We’re the champion and the cheerleader, and we collaborate with everyone in that ecosystem,” says Cintrifuse CEO J.B. Kropp. “It could be helping a Main Street business like a bake shop all the way to a high-tech company. We try to make sure we’re the front door to the ecosystem.”

Kropp is no stranger to the startup world. He was a co-founder of seed-stage accelerator The Brandery, a co-founder of Main Street Ventures, and has spent time at Twitter and Gorilla Glue, and founded startups of his own. He’s now leading strategy and operations for Cintrifuse Capital, which is the venture capitalist arm of Cintrifuse.

Kropp says that startups face three main challenges: capital, customers, and talent. Entrepreneurs and leaders say the same thing when asked what the greatest challenge startups face in Cincinnati: capital. This isn’t unique to Cincinnati, just a primary component of the beginning stages of a startup—but it’s a lot easier to find funding in Silicon Valley or New York, where capital runs deep.

Kropp notes that Cincinnati has always been a conservative town when it comes to risk, while investors on the coasts expect it. Now that Cintrifuse Capital is in town with money to deploy, it gives other investors more confidence that they can co-invest with Cintrifuse. Confidence is built by knowing Cintrifuse is looking at every deal, trying to find the best founders and the best startups to back in Cincinnati. “We can’t do it alone in Cincinnati,” he says. “We require other investors from outside the region to come in and help support a startup.”

Cintrifuse is a $180 million fund, with $50 million–$80 million going directly to local companies, something that hasn’t been done in the past. So far, Cintrifuse has invested in 12 local startups for a total of about $4 million. The investments have attracted more than $30 million of outside capital into these startups. “The last 10 years of Cintrifuse has been establishing a foundation of entrepreneurship and establishing the ecosystem, the corporations, the local partners,” says Kropp, who succeeded Pete Blackshaw as CEO in March. “Now that we have capital to deploy, the next 10 years will look very different.”

Kropp estimates that they could have upwards of 50–60 portfolio companies in the next couple of years, which he says is a lot of companies to support, find, fund, and grow here in town. “That’s why I’m very excited about this opportunity. We’re going to be putting a lot of capital to work. And putting $50 million in Cincinnati could attract $500 million.”

Cintrfuse has a laundry list of success stories. A few recent ones include:

Clean Age: Personal care brand that targets GenZ and Gen Alpha with sustainable packaging, better-for-you ingredients, and gender-agnostic branding.

LunchTable: A fan activation platform that turns fans of a brand into brand ambassadors who boost brand, marketing, and sales efforts.

Picture Health: Provides enhanced analysis and insights through AI for cancer diagnosis, prognosis, treatment selection, and tumor monitoring.

Cintrifuse is also working to tackle the talent challenge startups face by hiring a head of network to identify talent looking for their next role and matching them with startups, with the goal of hiring employees here in Cincinnati. The growth in the number of startups will bring trust in the talent market, Kropp says, because it’s sometimes hard to get people to leave their day job to join a high-risk startup.

Cintrifuse recently secured $10 million in funding from Ohio’s State Small Business Credit Initiative matching funds to help establish a $20-million venture capital fund aimed at supporting high-growth startups in Southwest Ohio. The new fund will focus on investing in and scaling early-stage companies, providing them with support and resources to navigate growth stages effectively.


Main Street Ventures

Sean Parker / Photograph by Jeremy Kramer

Founded in 1999, Main Street Ventures emerged from a need to provide resources to aspiring entrepreneurs. The initial focus was on establishing a physical space with easy access to internet connections, because as an entrepreneur in Cincinnati you needed access to digital tools and access to inexpensive office space. Main Street Ventures has undergone several chapters over the years, and today it’s a financial engine for startups, providing equity-free grants to fuel early-stage businesses and propel them toward growth.

Executive Director Sean Parker’s passion for entrepreneurship began at a young age. From selling seashells collected on family vacations to mowing lawns in the neighborhood, he maintained the drive to create and build something of his own. He started his career in public relations and corporate communications but consistently gravitated toward opportunities to support entrepreneurs and contribute to community development. His passion for entrepreneurship ultimately led him to Main Street Ventures in March 2023, when he assumed the top leadership role.

“We’ve aligned ourselves with being the funding and financial engine for startups in Greater Cincinnati,” says Parker. “Essentially, we’re looking to create the United Way of entrepreneurship support in our community and to be at that early stage, to help them with both capital and education and connections to create the next Medpace or TQL to come out of this region.”

Main Street Ventures recognizes the challenges faced by entrepreneurs before their businesses have reached the point of attracting venture capital. By offering equity-free grants to pre-seed and early revenue companies, they provide resources at a time when they can have the most significant impact. The grants can be used for a variety of needs, from product development and marketing to hiring talent and securing equipment.

Main Street Ventures provided 64 grants to small businesses across the Cincinnati region last year, including to brothers David, Fletcher, and Henry Pease, founders of Rekkie smart snow goggles. The grant allowed them to develop their product to the point where they could present it on the TV show Shark Tank, where they received investment from Mark Cuban. Other grant recipients include LuLu’s Sweet Bakery in West Chester, Eve Floral Co., and BlaCk OWned OuterWear; 78 percent of grant recipient founders are considered from underrepresented communities.

Main Street Ventures programs have created 769 jobs in the region and distributed $4.1 million to local startups and businesses. “One of my favorites to talk about is Wyoming Community Coffee,” says Parker. “We provided them with a grant to help them purchase a coffee bean roaster, which allowed them to source their beans from women around the world where coffee is their only or primary source of income. It allowed them to train a couple of their employees on roasting to produce and bag their own coffee beans to sell.”

Parker says the organization places entrepreneurs at the center of everything it does. With a variety of resources and organizations available to them, streamlined communication and collaboration ensure that entrepreneurs don’t waste precious time and resources navigating the system. Ultimately, a thriving ecosystem built on collaboration is the key to moving Cincinnati’s entrepreneurial spirit forward and nurturing business leaders who will shape the city’s future.


1819 Innovation Hub

Ryan Hays

In Uptown’s Innovation District, the University of Cincinnati’s 1819 Hub fosters collaboration among industry, entrepreneurs, and academics. Ryan Hays is a couple of years into his role as UC’s executive vice president and chief innovation and strategy officer, though the concept for the hub itself dates back to 2013. Through several iterations, the idea evolved from the University of Cincinnati Research Institute, which Hays chaired during his time as President Neville Pinto’s chief of staff, which laid the groundwork for 1819’s core mission: how to bridge the gap between industry and academia.

“The idea of innovation and the intersection of industry and academia has always been a pet project of mine,” says Hays. This passion is evident in his decision to step into the role of chief innovation officer when David Adams departed in late 2022, allowing him to work full-time in this space he cares so deeply about.

At its core, 1819 is a physical place where Fortune 500 companies, entrepreneurs, students, and faculty collaborate. It’s strategically located near trauma-1 hospitals, UC’s main campus, and the UC College of Medicine, underscoring its commitment to collaboration and innovation. Originally a Sears, Roebuck & Co. building, the space houses offices from a wide range of businesses, including Fortune 500 and Fortune 1,000 companies, startups, mid-cap companies, and venture funds. University of Cincinnati faculty, staff, and students also have access to resources in 1819, such as the 12,000-square-foot Maker Space, where students have access to 3D printers and woodworking tools, and the 5,000 square-foot eSports Lab.

Notable tenants at 1819 include P&G, Kroger, altafiber, MainStreet Ventures, and Fifth Third Bank. “All of this is literally under one roof,” says Hays. “1819 is the one place in our region where Fortune 500 companies, entrepreneurs, students, and faculty can all work together, side by side, all in one place.”

A challenge facing many businesses and startups is the need for qualified talent. UC’s cornerstone co-op program plays a vital role in developing talent and meeting business demands by giving students in paid, on-the-job experience at a local, national, or international business, benefiting both students and the local startup and business ecosystem. Some UC majors require co-ops, which provides a significant volume of available talent in the region. UC is ranked fourth in the nation for co-op and internships by U.S. News and World Report, and its co-op students earn a collective $75 million annually.

“Co-op gives companies, both big corporations and startups, a chance to test drive talent, which is a great way to figure out if it’s going to be a good fit for your organization from a culture and chemistry standpoint, but also a competency standpoint,” says Hays. “Being able to test drive that talent in a low-stakes way, because it’s only a semester commitment. If it works, great. If it doesn’t, both parties are able to part ways and there’s not sunk costs in terms of hiring a new employee and realizing they’re not a good fit.”

UC’s enrollment goal is to reach 60,000 students by 2030 in order to meet what Hays says is an acute regional need for young talent. In addition to students providing temporary talent, roughly half of UC’s alumni base stay within the Cincinnati region and meet area talent needs. “We take a lot of pride in the fact that so many Bearcats stay here in Cincinnati and build businesses, build families, and build networks,” says Hays.

Looking ahead, Hays is motivated by the sustainable growth potential from leveraging UC assets and talent as well as from collaboration opportunities. “For so many years, we’ve focused on downtown, which has been a great success for Cincinnati,” he says. “But we’re flying on one engine. There’s an opportunity to launch uptown as an engine of growth for Cincinnati and start to fly on two engines. We’ll be able to go much farther much faster if we get uptown and downtown working in concert. We’re ready to have 1819 and the Cincinnati Innovation District play our part in helping Cincinnati grow in all the right ways that will be successful.”

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