Public-private, seed-stage investor CincyTech closes its third fund earlier today with US$10.9 million in additional capital from several investors including Ohio Third Frontier. The Cincinnati-based company stated that proceeds raised will be used to finance future investments in local startup companies in the technology sector.
CincyTech Fund III, LLC combined Ohio Third Frontier's US$5 million contribution with the US$5.9 million gained from Southwest Ohio partners.
"Over the last five years there has been a significant increase in seed stage investment activity in the Cincinnati region. CincyTech Fund III will enable us to continue to invest in entrepreneurs in Southwest Ohio to create jobs and wealth to propel our region forward," remarked CincyTech President Bob Coy on the fund.
"The number of individual investors in Fund III represents a dramatic increase from the nine individual investors in Fund II. These individuals are the foundation of the larger seed stage investment syndicates that we organize for our portfolio companies. Based upon our past investment experience, for every dollar invested in a startup from Fund III, an additional $3 will be invested by other investors in the seed round prior to an investment by an institutional venture capital fund," the company president added.
CincyTech, a public-private venture development firm, has invested around US$15.3 million in 43 different companies to date.
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