Local business leaders are optimistic about Central Ohio's startup future, even as venture capital investments level out from pandemic-era heights.

Why it matters: Investment funding cooled off around 2023, making it more challenging for Ohio startups to find the cash needed to grow.

• Many factors contributed to that volatile market besides the pandemic, including interest rates and inflated valuations.

State of play: Now on the other side of that funding dip, leaders at Columbus venture development studio and investment fund Rev1 feel the region is well positioned.

• Despite stagnant VC numbers, their portfolio companies — mostly Central Ohio-based — hit an all-time capital high of more than $1 billion last year in combined revenue, exit values and investment.
• Kristy Campbell, Rev1's executive vice president and COO, tells Axios that trend indicates a "maturing of the startup environment" in Columbus that's supporting more serial entrepreneurs.

Follow the money: According to the National Venture Capital Association, VC fundraising surged in America from $93 billion in 2020 to around $169 billion in 2021.

• That figure grew slightly to nearly $173 billion in 2022, but signs of a slowdown were already present. First-time VC fundraising dropped by more than half.
• The bottom fell out in 2023, dipping to a low since 2017 of $67 billion. Last year is projected to be around that level.

Zoom in: Our startup scene felt those ebbs and flows.

• Crunchbase declared it had "taken off" in 2021, with over $2 billion in VC funding toward companies like Olive AI and Path Robotics.
• But just two years later, funding across the state plummeted with national trends.

Between the lines: One reason for the continued optimism: Our region benefits from not being as industry-dependent as others.

• "Unlike a lot of regions where they might just have one or two key industries, we've got a plethora and no one industry makes up any large amount of that," Campbell says.

What we're watching: Rev1 president and CEO Tom Walker still expects the planned $20 billion Intel semiconductor plant to attract a wave of companies, despite the company's ups and downs.

• "That's going to be heavily software-driven, it's going to be advanced manufacturing-driven, it's going to be energy-driven and it's going to be advanced materials-driven," he tells us. "Those are real opportunities for the future."

💭 Our thought bubble: It's early to gauge impact, but similar ripple effects from the massive Anduril weapons megafactory planned on the South Side may be seen for years to come.

The Columbus area is home to hundreds of startups, and not even the savviest investors can be totally sure which will become the next huge thing.

Why it matters: Startups that evolve into massive corporations can boost a region's economy by creating jobs, bolstering its reputation and fostering venture funding and talent development.

Here are five Central Ohio startups we're paying close attention to this year:

🏥 Redi Health: The chronic disease management app attracted $14 million in Series B funding last year.

• From pharmaceutical disruptors CoverMyMeds to gene therapy leaders Forge Biologics, Columbus is becoming a hub for health care innovation, and Redi Health could be next in line.

⚡️ Power to Hydrogen: The startup raised $18 million last year ahead of European expansion plans.

• Its industrial hydrogen production systems come as the U.S. competes with China on green energy tech.

👓 Trace: The company specializes in creating and deploying augmented reality content for hardware like the Apple Vision Pro.

• After three years in stealth, Trace raised $2 million last year when it emerged.

🦠 Clarametyx: The company, founded in 2020, is developing ways to fight drug-resistant infections and raised $33 million last year.

• Now, it's working on a vaccine to prevent bacterial infections.

⭐️ Five Star Fans: Two former OSU cheerleaders launched this startup in the advent of college sports' name, image and likeness policy.

• It allows users to directly reward their favorite players through paid "likes."

In other business-related news, Franklin County once again topped Ohio's tally of new business applications, per new census data.

By the numbers: Residents here filed applications at a rate of 18.4 for every 1,000 residents in 2023, the same rate as 2022.

• That's higher than the national rate of 16.3.

Yes, but: Ohio's overall rate (12.6) is quite less than the national average, which could point to a lack of confidence in the state's economy as a whole.

Go deeper: Where Americans are starting new businesses

🍻 Crossroads Pub, a bar near Hebron co-owned by Jack Sawyer's parents, has been booming ever since the defensive end's legendary playoff scoop-and-score. (Newark Advocate)

🤑 Monday's national championship is also a boon for head coach Ryan Day, who earned a $1 million performance bonus. (WCMH-TV)

🏙️ Downtown Columbus Inc. now owns Huntington's three downtown buildings. It recently announced the Columbus Department of Public Utilities will move into Huntington Plaza later this year. (Columbus Business First 🔒)

A "targeted shooting" at a Blacklick home killed a 4-year-old girl early yesterday, but sheriff's deputies haven't shared further details. (WBNS-TV)

Griping about the weather is a pastime on freezing-cold days like today — but compared to other states and parts of Ohio, we don't have it that bad.

A pick-me-up: Central Ohio has low risk of experiencing extreme weather like wildfires, winds and floods.

Why it matters: Americans who live in states dealing with such disasters could see home insurance rates increase — or lose coverage entirely — as they intensify.

By the numbers: Just 8% of Ohio properties were at risk of an insurance rate increase in 2023, and only due to flooding.

• That included 3.7% of Franklin County homeowners.

Go deeper: Wildfires and hurricanes could make parts of U.S. uninsurable