Calculate the numbers: 2021 has been great for venture capital finance in Ohio
This year will not be remembered in many ways, but 2021 has been huge for venture capital funding in Ohio.
This is what Crunchbase says in this analysis, which notes that so far this year, “Ohio-based companies have raised more than $ 2.2 billion in venture capital funding at all stages,” according to the organization’s data. “This is more than double the amount raised in all of 2020 and represents the highest statewide funding total to date.”
From the article:
Leading the gains are a slew of big rounds of high valuations for companies like healthcare artificial intelligence provider Olive and welding automation pioneer Path Robotics. The average circle size has more than doubled. All of this leads longtime local investors to conclude that Buckeye State’s startup scene is finally hitting its stride.
“I think this outsized increase is not one-off,†said Ray Leach, CEO of JumpStart, a Cleveland-based venture capital development organization that supports and invests in startups. He points to several factors, including some recent success stories from Ohio founders and a larger pool of local capital. Dropping face-to-face meetings amid the pandemic has also helped local businesses win over out-of-state investors.
Most of the funded businesses are located in or around Columbus, Cleveland, and Cincinnati. Of the three, “Columbus posted the highest gains,” notes Crunchbase. It benefits from being home to Ohio State University “and a local talent base in insurtech and fintech, two hot areas for start-up investments.”
Cleveland “doesn’t see the same concentration of supergiant shells of $ 100 million or more” as Columbus and Cincinnati. However, according to Crunchbase, “Significant deals are underway. Splash Financial, a student loan refinancing platform that raised $ 44 million in June, and SPR Therapeutics, a medical device startup focused on managing the Pain which closed on $ 37 million. in October. “
On the early stage side, the article notes that “Ohio was one of the best performing states in terms of investment gains.… Year.”