State’s VC Investments up Nearly 50 Percent While Nation Sees Dramatic Decrease

OSU’s Fisher College of Business Center for Entrepreneurship reports that venture capital investments in the state in 2008 were up nearly 50 percent year-over-year, as compared to a 20 percent drop nationwide. 

Most of these investments, 66 percent, were made in seed and early-stage companies.  Investment in these earliest stage companies is considered vital in building the next generation of Ohio employees.  “It’s encouraging to see that while early-stage investment has contracted nationally, Ohio was able to buck the trend with a significant expansion,” says Paul Cohn, regional director of The Ohio Capital Fund.

Although the full report is not expected to be released until later this year, some of the key findings include:

• Ohio early-stage technology companies attracted $445 million in new venture capital investments last year.
• Ohio imported only 53 percent of total 2008 VC as compared to 75 percent in 2007.  This is seen as an important indicator that the Ohio-based venture capital community is growing and getting stronger.
• The year saw significant increases in investments in specialty materials, IT and energy.
• Healthcare and biomedical companies received the greatest amount of funding with 61 early-stage companies receiving in excess of $200 million.
   

For more details, see the release from OSU’s Fisher College of Business.