CincyTech, a US-based venture development organisation focusing on digital and life science technology companies, closed a $30.8m fund on Friday backed by two healthcare providers.
Cincinnati Children’s Hospital Medical Center and UC Health were joined in the $20.8m equity portion of the fund by LPs including professional services firm Castellini Management Company, financial services provider Western & Southern Financial Group, and foundations Interact for Health and Greater Cincinnati Foundation.
A total of 12 institutional investors committed capital to the fund alongside 79 individuals, while Ohio state-backed fund Ohio Third Frontier supplied $10m in debt financing.
Headquartered in Cincinnati, CincyTech funds startups in Southwest Ohio, and will look to invest the cash in up to 25 local companies over the next three years. The fund, its fourth, follows the $10.9m third fund it closed in 2013.
Bob Coy, president and CEO of CincyTech, said: “Fund IV exceeds CincyTech’s previous three funds combined, in terms of both capital raised and number of investors.
“This broadening base of community investment in Fund IV demonstrates confidence in the companies we are helping to build and interest in the entrepreneurial potential of our region.”