Angel investors group works to close Ohio's VC gap
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Ohio startups are missing out on venture capital amid West Coast megadeals and the global AI boom, though a new group of angel investors is working to close the glaring funding gap.
Why it matters: Ohio has around 3.5% of the U.S. population but receives just 0.58% of national venture capital, per Rev1, a Columbus-based and Ohio-funded venture development studio.
Driving the news: Rev1 managed the launch of 71/70 Angels this year — a collection of angel investors aiming to create a more self-sustaining startup ecosystem in Ohio.
- Angel investors are individuals who invest their own money into early-stage startups, often offering mentorship and networking in addition to funds.
What they're doing: The group closed its first fund this summer, which includes about 50 investors, and made its first two investments with Cincinnati-based marketing intelligence company Nichefire and an unnamed data privacy company.
What they're saying: "Having an angel group in a community is a really important part of the innovation ecosystem, because they do tend to provide more than just the investment capital," Rev1 CEO Tom Walker tells Axios.
- "They're successful business people; they're entrepreneurs themselves; they become mentors; they provide networking to other investment dollars. They can open doors."
By the numbers: Rev1 gathers its own data on investment in Ohio and the region.
- In 2024, Ohio represented just 2.1% of U.S. venture deals and 0.58% of venture funding.
- The entire mid-America region received just 8.3%.
Threat level: Between 2023 and 2024, every U.S. region other than the West Coast saw declines in deal count and value percentage, a trend Rev1 leaders attribute to blockbuster AI deals out west.
- That widening gap is a cause for concern to Walker.
- "If there's less venture capital going to the early stage and more capital going to fewer companies, that just magnifies the gap we see locally."
Yes, but: Speaking "anecdotally," Walker says he's hopeful that signs show "companies are having an easier time" raising funds this year.
The bottom line: Rev1 and investors are betting that a stronger local angel network can help the next big ideas secure guidance and funding, a battle president and COO Kristy Campbell says has been raging for decades.
- "That's why this organization was formed," she says. "That's why we continue to do what we do, and why we have more than 50 organizations funding us to be the infrastructure to do this work. … It's an important role."