How Cintrifuse moved to investing directly in Cincinnati startups and connecting them to Fifth Third and JobsOhio

When the Cincinnati Business Committee looked for the region’s weak spots, underinvestment in venture capital stood out. “The goal was to make Cincinnati a place where a good idea could become a company without the founders, the workers or the customers having to leave the region,” said Jeff Weedman, Cintrifuse’s founding CEO.

That effort produced Cintrifuse, a nonprofit founded in 2012 that runs programs and partnerships for Cincinnati startups, and its investment arm, Cintrifuse Capital. The early strategy sent money to national venture funds. Today, Cintrifuse Capital also invests directly in Cincinnati companies.

The shift comes as StartupCincy Week marks its 10th year and PitchBook ranks Cincinnati the No. 3 fastest-growing venture capital ecosystem in the world.

By the numbers

• $57 million raised for Cintrifuse Capital’s Fund I
• $113 million+ raised across Cintrifuse Capital’s Fund I and Fund II
• About 50 venture capital firms hosted each year at Cintrifuse Capital’s annual Liquidity Event
• More than $170 million in assets under management at Cintrifuse Capital
• $19.1 million invested in 52 Cincinnati startups, leading to $630 million in follow-on funding
• Nearly $3 million invested annually through the Emerging Founder Residency and Venture Velocity
• No. 3 ranking for Cincinnati among the world’s fastest-growing venture capital ecosystems, according to PitchBook

A McKinsey audit and a fund of funds

Before building anything, the business committee’s task force brought in McKinsey to compare Cincinnati with successful innovation ecosystems around the world. Weedman explained that Cincinnati ranked near the bottom of those reviewed. The resulting model rested on three pillars: money, place and connections.

Weedman modeled the fund on Michigan’s Renaissance Venture Capital Fund. Fund I raised $57 million and made its first investment in 2013, with most Cincinnati Business Committee companies contributing, he noted. Tim Schigel, who founded the online sharing company ShareThis, led Fund I, and Sarah Anderson, now a partner at Vault Fund, led Fund II. Both funds invested in national venture firms, including Greycroft, Madrona Venture Group and Maveron, along with Cincinnati’s River Cities Capital and Refinery Ventures, which Schigel founded in 2017.

The draw for those firms was access to decision-makers at companies such as Procter & Gamble, Kroger and Macy’s. In 2013, Schigel told Soapbox that “the vision for Cintrifuse is to act as the bridge between the young entrepreneurs and the toolkits needed for their success.” Anderson described the same bridge. “We also regularly hosted approximately 50 VCs at our annual Liquidity Event and provided a stronger bridge between local startups and non-local capital,” Anderson said.

A community rallying cry

P&G loaned Weedman to lead the initiative, and the Cincinnati Center City Development Corp. (3CDC) supported a home in Over-the-Rhine, where startups, mentors and community events shared historic buildings. Weedman spent about two years establishing the organization before retiring from the operating role.

StartupCincy, the name for the region’s startup ecosystem, emerged from the community as a rallying cry. It gained traction in 2016, when Wendy Lea was Cintrifuse’s CEO and Eric Wiseman led the first StartupCincy Week. Cintrifuse now executes StartupCincy’s community programs.

From the Brandery to direct investment

J.B. Kropp was building Cincinnati’s startup ecosystem before Cintrifuse existed. He co-founded the Brandery accelerator in 2010 with Rob McDonald and Dave Knox.

As managing partner of Cintrifuse Capital, Kropp led its move into direct investment in Cincinnati startups beginning in April 2023. He became CEO of Cintrifuse in February 2024 and also serves as managing director.

Kropp leads Fund III, which splits its investing 60/40 between funds and direct investments in Cincinnati-based startups. He also oversees the Seed Fund, run through the State Small Business Credit Initiative (SSBCI) and matching corporate dollars, which invests entirely in Cincinnati-based startups. Across all three funds, Cintrifuse Capital has put $126 million into national venture funds, which back about 1,500 companies.

Funding the earliest stages

Cintrifuse runs the Emerging Founder Residency and Venture Velocity, and Cintrifuse Capital makes the investments. The residency invests $300,000 before a company has a product or revenue and gives founders a year of funding and support. Its first cohort, which began in September, drew applicants from 26 states and 11 countries and required founders to move to Cincinnati full time.

The five companies are Surgical RX, Deep Variance, MyFutureSelf, Plasmole and AI Echo. Venture Velocity invests up to $250,000 per company once there is early traction. It has funded 19 companies and produced one exit, Lyceum AI.

The 52 companies in the direct portfolio have since raised $630 million from other investors, about $33 for every dollar Cintrifuse Capital put in, the organization reported. “Our early check and connections are often what make a local company ready for national investors,” said Kate Hursh-Wogenstahl, director of marketing and communications at Cintrifuse.

One front door for founders

Cintrifuse reported that its portfolio companies hold more than 20 pilots or customer contracts with Cincinnati corporations such as Fifth Third, P&G and Kroger. Ten years ago, getting a large Cincinnati company to work with an early-stage startup was hard, the organization noted, and local corporations are now starting to lean in.

The organization also works with the city’s Office of Strategic Growth & Innovation on pilots, including Airtrek Robotics at Lunken Airport and Vixiv with the City of Cincinnati. Partnerships with REDI Cincinnati, JobsOhio and the Port of Greater Cincinnati Development Authority connect startups to real estate, talent and incentives.

“Founders get one front door to all of it, instead of having to find and navigate each organization on their own,” Hursh-Wogenstahl said.

Lessons and the next phase

Weedman identified senior sponsorship as the primary condition for building a regional ecosystem. “None of it works without strong senior sponsorship,” Weedman said. Anderson emphasized shared effort. “Importantly, Cintrifuse is one part of a larger team that enables innovation within the Cincinnati region,” Anderson said.

Cintrifuse described its next goals as more companies started, more companies scaling and hiring, and more venture capital coming into the region. Builder Fellows will launch a second cohort in 2027, and the Emerging Founder Residency will recruit its second cohort that year. Cintrifuse Capital plans to double down on backing Cincinnati founders in the next year, continuing to invest in pre-seed and seed rounds.

The long-term aim is more exits. Past exits include VNDLY, Ahalogy, Flamel, Lyceum AI and Amify. “The money made here stays here and gets reinvested here,” Hursh-Wogenstahl said.