The O.H.I.O. Fund Hits $647 Million: New capital, AI healthcare, and coast-to-Ohio moves

The O.H.I.O. Fund closed the first quarter of 2026 with $290 million in new commitments, bringing total committed capital across its private funds to $647 million. The quarter also brought four new investments and a significant follow-on, including a check into Dublin-based LainaHealth, a company applying AI to one of healthcare's most persistent access problems.

For Mark Kvamme, CEO of The O.H.I.O. Fund, LainaHealth fits a thesis he has been building since the Fund's launch. Ohio companies, across multiple sectors and stages, solving real market problems and ready to scale nationally.

"Our Fund invested in LainaHealth because it reflects exactly the kind of Ohio-built innovation we believe has significant room for continued growth nationally while addressing a real market need," Kvamme shared with Ohio Tech News in an exclusive interview.

A Different Take on Physical Therapy

LainaHealth pairs licensed clinicians with an AI-native care platform that allows patients to complete physical therapy from home. The model is built to remove the friction that causes most patients to abandon prescribed care, including time, distance, cost, and the complexity of app downloads or wearable devices.

The investment lands at a moment when roughly 65% of physical therapy prescriptions go unfilled nationally, and when payers, employers, and health systems are actively searching for delivery models that improve adherence without adding cost.

"The company's model removes common barriers like time, distance, cost, app downloads and wearable devices, while giving clinicians data to monitor progress and adjust care plans," Kvamme told Ohio Tech News.

LainaHealth, formerly known as IncludeHealth, has raised $35.7 million to date and is expanding partnerships with health plans, employers, and integrated delivery networks.

$290 Million and a Growing Investor Base

The Q1 commitments pushed committed capital across the Fund's private vehicles from $356 million to $647 million in a single quarter. Kvamme attributes the pace to investor interest in Ohio as a defined opportunity set rather than a single sector bet.

"We believe the growth reflects increasing investor confidence in our model and in the opportunity to generate returns from investing in Ohio companies and projects," he said.

The O.H.I.O. Fund invests across infrastructure, real estate, biotech, technology, professional services, healthcare, and advanced manufacturing. The multi-asset thesis leans on Ohio's economic diversity rather than concentrating in any single category. The evergreen structure of the Ohio High Growth Investment Opportunities Fund also gives the team room to invest across different time horizons, unlike traditional closed-end venture or private equity vehicles.

"Many successful investments in Ohio companies and projects are led by investors from outside the state," Kvamme notes. "The O.H.I.O. Fund's investment strategy enables our investors to partner with these firms and capture the investment returns."

Through March 31, total active deployment by the Fund reached $217 million across 33 multi-asset investments, including a $25 million manufacturing expansion.

A California to Ohio relocation

One of the quarter's most closely watched investments was Hyperframe, an advanced manufacturing and construction technology company that relocated from California to Columbus as part of the deal. Kvamme said the move reflects a broader pattern in how founders are evaluating where to scale.

"Hyperframe's relocation signals that Ohio is becoming a destination for the next generation of advanced manufacturing and industrial technology companies, not just a place known for traditional manufacturing, but a place where innovative companies can scale," he said.

For Hyperframe specifically, the calculus extended beyond cost. Ohio offered access to manufacturing talent, proximity to suppliers and East Coast and Midwest construction markets, and a central logistics position. Founder Ken Sobel has said publicly that California was a great place to start a technology company but not the ideal place to scale a manufacturing startup.

"Companies building real products, especially in advanced manufacturing, automation, and industrial technology, are increasingly looking to places like Ohio with deep operational expertise and strong industrial infrastructure," Kvamme said.

The Sectors Drawing Focus

Looking ahead, Kvamme said the Fund is focused on advanced manufacturing, healthcare, AI-enabled businesses, technology, real estate, and infrastructure, with particular interest in middle-market manufacturing companies that can be sharpened by AI, automation, and modern operating tools.

Kvamme also signaled a geographic priority that runs counter to typical venture concentration: "We also want to see opportunities across the entire state, not only in Columbus, Cleveland, and Cincinnati. Our goal is to support companies that can grow in Ohio, whether they are in a major metro or one of the state's smaller communities."

The Fund's posture toward portfolio companies also differs from traditional private equity or venture models. The O.H.I.O. Fund does not seek control of the companies it backs, positioning itself as a growth partner rather than an acquirer.

A second institutional Fund is now launching, which Kvamme said will expand the Fund's capacity to invest in companies and projects across Ohio.