User:JeffTheStreet/The Ohio Capital Fund

The Ohio Capital Fund
The Ohio Capital Fund was established by legislative mandate in 2003 to help increase private investment in Ohio companies in the critical seed and early stages of business development. The mission of the fund is to attract the attention of private venture capitalists by investing in their venture capital funds. These venture capital funds commit to invest at least half of The Ohio Capital Fund monies in Ohio-based companies, corporations and individuals. (1)http://codes.ohio.gov/orc/150.01

The Ohio Capital Fund operates as a partner with the Ohio’s innovative Third Frontier Program; together the two fund programs improve Ohio’s competitive advantage for attracting entrepreneurs and their emerging businesses. According to The Fisher College of Business at The Ohio State University, in 2008, when seed and early stage investment declined nationally by 20%, investment in Ohio-based businesses at these critical stages increased by 50%. (2)http://fisher.osu.edu/mag/2009/vcreport/

Oversight
The Ohio Capital Fund receives oversight from the Ohio Venture Capital Authority (OVCA). The OVCA is comprised of three members appointed by the Governor of Ohio with one nominated from a slate of candidates submitted by the Speaker of the Ohio House and one selected from a slate of candidates submitted by the President of the Ohio Senate. (3)http://66.161.141.185/oac/150-1

Resource Development
The Ohio Capital Fund raises monies for investment from private investors who limit their risk of loss with guaranteed state tax credits which would cover their potential losses. Ninety percent of any gains that the Ohio Capital Fund realizes go into a trust to be used to provide scholarships to Ohio colleges and universities.(4)http://66.161.141.185/oac/150-1

Accomplishments
As of the First Quarter of 2010, the Ohio Capital Fund has committed funds in 21 venture capital funds 8 of which have a new presence in Ohio due to the commitment from Ohio Capital Fund. The 21 venture capital funds and their co-investors have invested nearly $250 million in Ohio companies. Those companies employ nearly 1,600, and have a combined annual payroll of more than $100 million. Most of these companies remain in the early stages of development and will likely grow exponentially. For every Ohio Capital Fund dollar invested in venture capital funds, Ohio has attracted $4.76 in venture capital to support emerging businesses. (5)http://www.ohiocapitalfund.com/pdf/031210_ocfannounces40company.pdf

Investment Process
The criteria for a venture capital fund to receive a commitment include performance potential, portfolio composition and commitment to invest into seed and/or early stage companies located in Ohio. All selected funds undergo an extensive review and due diligence process.(6)http://www.ohiocapitalfund.com/evaluationmatters.asp

Category:venture capital Category:economic development Category:private investment Category:emerging technology