Innovation Capital Grows More Than 72% in 2010 to Record $307.5 Million in Central Ohio

Innovation capital in Central Ohio increased more than 72 percent in 2010 as 117 of the region’s most promising young companies received more than $300 million to fuel the growth of their businesses, according to a new report recently released by TechColumbus.

“The record level of funding in 2010 underscores the rapid growth of Central Ohio’s innovation economy,” said Ted Ford, president and CEO of TechColumbus.

The year was also record-setting in terms of the number of seed-stage deals funded at the earliest startup stage, as 66 seed stage companies received innovation capital in 2010.  “The more seed stage companies we can feed into the pipeline, the greater number of growth enterprises will begin to emerge from Central Ohio,” said Ford.

Key findings from the report:

• Innovation capital has grown steadily over the past five years, from more than $64 million in 2005 to more than $307 million in 2010.
• While funding for the IT and healthcare sectors remained strong within the region over the past several years, in 2010 companies involved in clean and green tech received significant increases in funding, specifically energy, environmental and advanced materials. Combined, these three sectors accounted for 45 percent of earliest-stage innovation capital, - nearly $52 million.
• Sixty-six seed-stage deals were funded in 2010. This not only is the largest number on record, but when compared to previous years, tells an impressive story about the progression of deal flow in Central Ohio. In 2005, 15 seed-stage deals accounted for more than $10 million, compared with 2010 when 66 seed-stage companies received more than $70 million. Increased support of these seed-stage companies has led to more deals at all stages.
• The region saw a dramatic increase in exit funding as seven companies received more than $194 million in later-stage capital in 2010. The TechColumbus report takes into account only those mergers, acquisitions and later-stage deals for companies whose operations, jobs and revenues will remain in the region.  Tracking and reporting on later-stage deals is a key consideration for attracting venture capitalists to invest in the region with some assurance of gaining returns on their investments in a timely manner. 

With these findings in mind Ford added, “Not only does the advancement of the region’s innovation  economy depend on financial resources available here, but also the unique corporate, public/private, academic and human assets that contribute to the region’s entrepreneurial ecosystem. This will ensure the region remains fertile ground for creating and incubating the technology-driven, high growth companies that drive the continued prosperity of the region, its innovation  workers and those who invest financially in Central Ohio.”

This report, which provides a more complete and accurate reflection of the state of innovation capital in Central Ohio than is available through national databases, is a compilation of data from several sources, including national venture databases and records from the State of Ohio. Innovation capital in this report represents all sources of funding, including venture capital, angel investments, loans, grants, mergers and acquisitions that support the formation, acceleration and growth of entrepreneurial, innovation-based private companies.

Access the full Central Ohio Innovation Capital Report.