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Unedited Blog Post:  When you think of an emerging entrepreneurial ecosystem, you probably think of Austin or Boulder, not a moderately sized city deep in the heart of the midwest. However, Cincinnati is positioning itself as an entrepreneurial ecosystem.

The ten Fortune 500 companies that call Local and state governments have historically helped ignite the Cincinnati provide a unique advantage for the emerging ecosystem. They have Individual grant programs provide the potential to ignite Cincinnati Children's Hospital Medical Center, University of Cincinnati and the ecosystem, providing a unique narrative to a city known not Cincinnati Regional Chamber with funding for high -tech developmentprojects. Until recently, but for branding, marketing and design. In 2015 Cincinnati jumped from 35th place to 16th out of 40 metropolitan areas for biggest positive shifts in rank across entrepreneurship the Fortune 500 companies have been largely nonexistent in the city, state, and national levels. Several areas of the ecosystem are on a good trajectory, but many lack sufficient capabilities and resources that are likely inhibiting Cincinnati’s ecosystem development.

History The past few years have seen an emergence in entrepreneurial resources available for Cincinnati. Accelerators now span the tristate area of EntrepreneurshipOhio, Kentucky and Indiana. Less than ten years ago, you would have been pressed to find one accelerator in the region. The Brandery, located in Cincinnati and founded in 2010, was inspired by successful accelerators such as Austin's Capital Factory and Boulder's TechStars. The Brandery offers a three-month program for seed-stage companies that utilizes the already existing strengths of Cincinnati: branding, marketing and design. Companies receive $50,000 in seed funding, office space, branding identity, legal support and more in return for 6% equity stake in the startup. The Brandery has a portfolio of twenty-nine startups. Notably, the Brandery accelerated FlightCar, "a marketplace that allows owners flying out of an airport to rent out their cars to arriving travelers" that was acquired by Mercedes Benz and Skip, "a mobile checkout solution that allows you to scan items as you go through the store and skip the checkout line." The Brandery has been ranked a top-ten U.S. accelerator. Launched in 2012, UpTech is a Greater Cincinnati tech accelerator program for data-driven startups. Located across the river from Cincinnati in Covington, Kentucky, UpTech was established as an effort by Northern Kentucky University College of Informatics and the Greater Cincinnati community. Up to ten startups go through a six-month accelerator program and receive up to $50,000 during the program. UpTech differs from traditional accelerators since it has hundreds of support staff in the form of community volunteers and interns from Northern Kentucky University. Successful UpTech startups include online walking-tourism planning platform, Touritz, and software and data management company, Liquid. The third and newest accelerator in Cincinnati is three-year old faith-based Ocean Accelerator. Ocean runs a five-month program that provides mentorship, monetary support in the form of a $50,000 note, branding and legal advice. As the only faith-based accelerator in the nation, Ocean's curriculum features weekly bible studies. Alumni of Ocean include Casamatic, a real estate technology company that increases buyer engagement, and Cerkl, a startup that increases engagement. University Resources The University of Cincinnati and Xavier University provide student and researcher accelerator programs. The University of Cincinnati’s Technology Accelerator for Commercialization provides full-time faculty and staff with the opportunity to develop intellectual property at the University of Cincinnati. In order to be considered eligible for the TAC program, the technology must be developed at the University of Cincinnati and have a focus on commercialization. Start-up companies are not eligible for the TAC program. Xavier University offers a business program aimed to boost the Greater Cincinnati economy. Called X-LAB (short for Xavier Launch a Business), the seven-year old competition provides entrepreneurs (including students) opportunities to launch a business. The Williams College of Business supports the winners by providing the business expertise of its professors, executive mentors and MBA students. Cincinnati’s Venture Capital Woes Despite these resources, the ecosystem is not prCincinnatiFirstRoundoducing enough successful start-ups to be considered a stable ecosystem. It’s generally held that a solid ecosystem closes around thirty to thirty-five deals a year. Cincinnati falls far below this. While the number of Cincinnati first rounds has been increasing, it appears that ecosystem is leveling out only an average of five first rounds per year. The largest barrier to Cincinnati’s emergence as an entrepreneurial ecosystem is the absence of venture capital entering the system. Despite an increase in first rounds,CincinnatiVC current VC levels are not indicative of a successful ecosystem. Cincinnati VC peaked in 2002 at $343 million. The closest the ecosystem came to meeting 2002 VC levels was $235 million in 2014. The average VC entering the system is $139 million per year. Compared to VC levels of emerging ecosystems like Austin or Denver, Cincinnati’s VC is weak and not supportive of an ecosystem. Seed-Stage Funding

The local and state governments Cincinnati does have been stable seed-stage investors, which bodes well for the ignitors for future of the Cincinnati ecosystem. Grant programs have historically provided the Cincinnati Children’s Hospital Medical CenterCincyTech, University of Cincinnatia public-private seed-stage investor, and was the first effort by the local Cincinnati Regional Chamber with funding for high tech projectsgovernment to establish an entrepreneurial ecosystem. Companies such as KrogerEstablished in 2001, P&G CincyTech’s mission has been to strengthen the regional economy through the creation and Macy’s have long called Cincinnati home but have been largely nonexistent expansion of technology companies in Southwest Ohio. CincyTech is investing out of its fourth and largest fund, a $30.75 million seed-stage fund bigger than its first three funds combined. Queen City Angels is the ecosystemregion’s longest running angel group and is currently investing out of its largest fund of $10 million.

The past few years have seen One of Cincinnati’s most unique elements of its ecosystem is Cintrifuse. Established in 2011 with the goal of creating a remarkable increase in resources available sustainable technology driven economy for the Cincinnatimetropolitan area, Centrifuse manages a fund of funds. Accelerators now span the tristate This fund of Ohio, Kentucky, funds gives corporate investors access to over four hundred startups and Indiana. The Brandery, located creates a network of venture capital funds that invest in Cincinnati startups. Centrifuse works with both investors and founded in 2010startups to make lasting connections, was inspired by the success of accelerators such as Capital Factory pairing startups with potential customers and TechStarscorporations with startups that need mentorship. The Brandery In addition, Centrifuse offers a threeco-month program for seed stage companies that utilizes the already existing strengths of Cincinnati; branding, marketing, and design. Companies receive $50,000 in seed funding in return for 6% equity stake working space in Over-the startup, office space, branding identity, legal support -Rhine and more. The Brandery has been ranked a top ten accelerator in the nationentrepreneur focused educational programs.

UpTech is a Big companies like Kroger, USBank, the Greater-Cincinnati tech accelerator program Foundation and Duke Energy invest in Centrifuse because they depend on Cintrifuse’s help to source innovation for data-driven startups created in 2012. Startups go through a six-month accelerator program their businesses and receive up to $50,000 during grow the programregion’s startup ecosystem. The third and newest accelerator In turn, Cintrifuse invests in Cincinnati is OceanVC firms such as Allos Ventures, a three-year-old accelerator with a fiveMercury Fund and Sigma Prime Ventures. Cintrifuse also provides co-month program that provides mentorship, monetary support in the form of a $50,000 note, branding, working space and legal adviceentrepreneur education.


Seed stage investors such as Over-the-Rhine, a neighborhood of Cincinnati, is now home to Centrifuse, CincyTech and Queen City Angels provide the ecosystem with capitalBrandery. CincyTech’s mission is to strengthen the regional economy The companies going through the creation and expansion of technology companies in Southwest Ohio. CincyTech is investing out of its fourth and largest fundBrandery are only feet away from CincyTech’s capital, a $30.75 million seed stage fund bigger than its first three funds combined. Queen City Angels is the region’s longest running angel group and is currently investing out of its largest fund of $10 millionwhich provides unique collaboration opportunities.

CincyTech garnered considerable national attention after providing Lisnr, a company that has invented an ultrasonic technology for transmitting data through sound, with Stage A capital. Lisnr came to fruition aboard the 2012 StartupBus, a competition where participants launch a company Success in 72 hours on a bus headed to Austin, Texas for the South by Southwest Festival. Since Lisnr came to fruition, they have since received $10 million in Series B funding from Intel Capital and garnered accolades from CNBC’s Disruptor 50 list, Cannes Lions International Festival for Creativity, and Fast Company’s Innovation by Design Awards.

Not to be overlooked, Queen City Angels provided the initial stage funding for Assurex Health. Now ten years old, Assurex grew out of research at Cincinnati Children’s Hospital Medical Center and the Mayo Clinic. Its singular product is the GeneSight Test, which analyzes twelve genes that influence mental health and psychoactive drugs that treat a spectrum of mental-health disorders. Myriad Genetics purchased Assurex Health in April for $225 million with another $185 million to come when performance-met stipulations are met. 

StartupCincy, a public-private partnership that provides seed stage funding for Cincinnati startups, maintains an exhaustive list of upcoming network, education, accelerator and developer event in the city. It’s beloved by Cincinnati accelerators, seed stage investors, and entrepreneurs in the city. 


One of Cincinnati’s most unique elements of its ecosystem is Cintrifuse. Established in 2012 with CincyTech garnered considerable national attention after providing Lisnr, a goal to create a sustainable company that has invented an ultrasonic technology driven economy for the Cincinnati metropolitan areatransmitting data through sound, Centrifuse manages a fund of funds. This fund of funds gives corporate investors access to over four-hundred startups and creates a network of venture with Stage A capital funds that invest in Cincinnati startups. Centrifuse pairs start-ups with potential customers and corporations Lisnr came to start-ups. Big companies like Krogerfruition aboard the 2012 StartupBus, USBank, the Greater Cincinnati Foundation and Duke Energy invest a competition where participants launch a company in Centrifuse because they depend 72 hours on Cintrifuse’s help a bus headed to source innovation Austin for their businesses and grow the region’s startup ecosystemSouth by Southwest Festival. In turnSince Lisnr's establishment, Cintrifuse invests they have received $10 million in VC firms such as Allos Ventures, Mercury Fund, Series B funding from Intel Capital and Sigma Prime Ventures. Cintrifuse also provides co-working space and entrepreneur education. 
Over-the-Rhine, a neighborhood of Cincinnati is now home to Centrifuse, CincyTechgarnered accolades from CNBC’s Disruptor 50 list, Cannes Lions International Festival for Creativity and the Brandery. Coordination of the ecosystem creates cohesiveness. The companies going through the Brandery are only feet away from CincyTech’s capital, which provides unique collaboration opportunitiesFast Company’s Innovation by Design Awards.

No data—most recent VC data is from 2014 and has a three-year rolling average of $55 million. Falls far behind Austin, who is the leader with a three-year rolling average of $1.33 billion. 

Untapped PotentialCompared to Austin’s average number of 29.3 patents per 10,000 employees, Cincinnati has an average of 5.8. However, Cincinnati only sits behind Austin, Raleigh, Minneapolis and Detroit in average number of patents. According to _____, The University of Cincinnati has more invention disclosures per research dollar than MIT, but fewer patents due to the lack of resources According to ____, the University of Cincinnati has more invention disclosures per research dollar than MIT, but fewer patents due to lack of resources. 

It’s generally held that a stable ecosystem closes around thirty to thirty-five deals a year. Cincinnati falls far below this. For an ecosystem that really only started in 2010 with the establishment of the Brandery, Cincinnati is beginning to establish some of the resources it will need in order to emerge as an entrepreneurial ecosystem. However, VC and the number of first rounds need to increase in order to make Cincinnati an attractive ecosystem for startups and investors.