Ohio Governor Mike DeWine, Lt. Governor Jon Husted, and Ohio Department of Development Director Lydia Mihalik announced this week that the state plans to spend approximately $111 million to support Ohio tech-based companies.
According to a press release, two new funds, the Ohio Early Stage Focus Fund and the Ohio Venture Fund, will aid in boosting early-stage capital investments in Ohio technology-based businesses, accelerating the growth of high-potential businesses, and creating an environment that encourages the growth, retention, and recruitment of technology businesses to Ohio.
The new programs are part of the State Small Business Credit Initiative (SSBCI) Venture Capital Program. The American Rescue Plan Act reauthorized and expanded the SSBCI to provide $10 billion to support small businesses and empower them to access the capital needed to invest in job-creating opportunities as the country emerges from the pandemic.
DeWine said that these new programs will help ensure technology companies have the support they need to succeed.
“These programs will address gaps in early-stage capital as companies mature and new startups emerge, as well as for under-served communities that face barriers to accessing capital. By increasing access to funds, we are ensuring that technology companies have the support they need to thrive in the heart of innovation,” DeWine said.
Both programs are competitive, and proposals will be scored based on responsiveness to the requirements of the request for proposals.
The Ohio Early State Focus Fund provides capital to professionally managed investment funds to support early-stage technology companies that are owned by women or minorities in an area that has been under-served by venture capital. Organizations and private investment firms are eligible to apply for $1 million – $5 million of the more than $36 million available—development plans to make seven to 14 awards totaling up to $36,718,475 through this fund.
The Ohio Venture Fund provides capital to professionally managed investment funds to support Ohio technology companies with early-stage capital. Organizations and private investment firms can apply for $5 million – $10 million of the $75 million available—development plans to make seven to 15 awards totaling up to $75 million through this fund.
According to the press release, a $111 million pool is used to fund both initiatives.
According to Husted, venture capital isn’t just an investment; it’s a catalyst for innovation and a testament to the power of bold ideas in Ohio.
“Venture capital fuels the dreams that redefine industries, empowering pioneers to shape the future we envision today. This will help pave the way for sustained technological advancement and further reinforce Ohio’s position as the silicon heartland,” Husted said.
Mihalik said these programs help invest in the next generation of industry leaders.
“Through Ohio’s Venture Capital Programs, we’re creating an opportunity and fostering an environment where startups can thrive and create lasting impact for Ohio’s people, businesses, and communities,” Mihalik said.
According to the press release, the Ohio Department of Development began accepting funding proposals last week.
– – –
Hannah Poling is a lead reporter at The Ohio Star, The Star News Network, and The Arizona Sun Times. Follow Hannah on Twitter @HannahPoling1. Email tips to [email protected]
