Its official, the Ohio Third Frontier has about two years of money to hand out and that’s not good for organizations that have spend a vast majority of their efforts in building programs and hiring staff for the sole purpose of looking good for the Third Frontier RFPs. The incubator apocalypse, or ‘bator-ocalyspe, might be right around the corner for Ohio. But, is that really a bad thing to see the seven regional technology incubation hubs reduce their scope because of their funding getting cut by up to 50%?
SunDown is moving into some uncharted territory. Just recently, SunDown has created SunDown Fund I, LLC with the purpose of raising a small risk capital fund for very early stage companies. After about eight months of research, SunDown has identified a major gap in funding in Ohio – namely the true seed capital needed by entrepreneurs that have bootstrapped their idea so far, but need a little extra cash and talent to make it past their first major milestone.
The good part, if you can say that about a funding gap, is that VentureOhio has identified the same kind of funding gap in Ohio, so we have some third-party validation that this problem does indeed exist. As a matter of fact, VentureOhio has identified more than a $500M shortfall for all start-ups seeking early stage investments (seed, angel, Series A, etc.) in Ohio. This is a bad thing, since it forces home grown start-ups to seek funding elsewhere and move out of state – bad for job growth, bad for the economy, bad for Ohio….
The younger the companies are, the more jobs they create, regardless of their size. That’s the conclusion of a study by the National Bureau of Economic Research. In this study, which relies on data from the Census Bureau, the authors confirm that smaller companies created more jobs than larger companies during 1992-2005.
Modis just released a new infographic showing why startups are “going to change the world.” Its infographic provides the following details about the dynamic effect of startups globally:
The Great Lakes region tops the nation in angel investments for Q1 2014, according to The Halo Report. The new study reveals that more than 24 percent of total US angel investments in dollars occurred in the Great Lakes region of Illinois, Indiana, Michigan, Ohio and Wisconsin. This compares to 16.7% of total dollar invested in California and 10.9% in New York state.Total dollars invested by region. Courtesy The Halo Report.
The Halo Report is produced by the Angel Resource Institute and Silicon Valley Bank. The Halo Report™ provides analysis and trends on US angel and angel group activity. This report discusses angel group investment trends for Q1 2014, which represents a
total of 170 deals and $228M in total rounds including co-investors….