Key Takeaways
- • Cintrifuse Capital, the investment arm of Cincinnati nonprofit Cintrifuse, has moved from investing mainly in national venture funds to investing directly in Cincinnati startups, beginning in April 2023 under managing partner J.B. Kropp.
- • Cintrifuse Capital has raised $113 million-plus across Fund I and Fund II, manages more than $170 million in assets under management, and has put $126 million into national venture funds backing about 1,500 companies.
- • The 52 companies in its direct portfolio have raised $630 million from other investors, about $33 for every dollar Cintrifuse Capital invested, on $19.1 million deployed.
- • Portfolio companies hold more than 20 pilots or customer contracts with Cincinnati corporations including Fifth Third, P&G and Kroger, per the organization.
- • Cintrifuse cites PitchBook's ranking of Cincinnati as the No. 3 fastest-growing venture capital ecosystem in the world, and plans to double down on pre-seed and seed investing in the next year.
Summary
Cintrifuse, a nonprofit founded in 2012, was created after the Cincinnati Business Committee identified underinvestment in venture capital as a regional weakness. A McKinsey review commissioned by the task force found Cincinnati ranked near the bottom of innovation ecosystems it compared, according to founding CEO Jeff Weedman. The resulting model rested on three pillars: money, place and connections. Its early strategy channeled capital into national venture funds. Fund I raised $57 million and made its first investment in 2013, led by Tim Schigel, founder of ShareThis. Sarah Anderson, now a partner at Vault Fund, led Fund II. Both funds invested in national firms including Greycroft, Madrona Venture Group and Maveron, as well as Cincinnati's River Cities Capital and Refinery Ventures.
The firm has since shifted toward direct investment. J.B. Kropp, who co-founded the Brandery accelerator in 2010, led Cintrifuse Capital's move into direct investments in Cincinnati startups beginning in April 2023, and became Cintrifuse CEO in February 2024. Fund III splits its capital 60/40 between funds and direct Cincinnati investments. The Seed Fund, run through the State Small Business Credit Initiative (SSBCI) with matching corporate dollars, invests entirely in Cincinnati-based startups. Cintrifuse Capital reports $19.1 million invested in 52 Cincinnati startups, which has led to $630 million in follow-on funding.
Early-stage efforts include the Emerging Founder Residency, which invests $300,000 before a company has a product or revenue and requires founders to relocate to Cincinnati full time. Its first cohort, which began in September, drew applicants from 26 states and 11 countries. Venture Velocity invests up to $250,000 per company after early traction, has funded 19 companies and produced one exit, Lyceum AI. Together the programs deploy nearly $3 million annually. Cintrifuse says its portfolio has more than 20 pilots or customer contracts with corporations including Fifth Third, P&G and Kroger. The organization also works with the City's Office of Strategic Growth & Innovation, and partners with REDI Cincinnati, JobsOhio and the Port of Greater Cincinnati Development Authority. Builder Fellows will launch a second cohort in 2027, and the Emerging Founder Residency will recruit its second cohort that year. Past exits include VNDLY, Ahalogy, Flamel, Lyceum AI and Amify.
The firm has since shifted toward direct investment. J.B. Kropp, who co-founded the Brandery accelerator in 2010, led Cintrifuse Capital's move into direct investments in Cincinnati startups beginning in April 2023, and became Cintrifuse CEO in February 2024. Fund III splits its capital 60/40 between funds and direct Cincinnati investments. The Seed Fund, run through the State Small Business Credit Initiative (SSBCI) with matching corporate dollars, invests entirely in Cincinnati-based startups. Cintrifuse Capital reports $19.1 million invested in 52 Cincinnati startups, which has led to $630 million in follow-on funding.
Early-stage efforts include the Emerging Founder Residency, which invests $300,000 before a company has a product or revenue and requires founders to relocate to Cincinnati full time. Its first cohort, which began in September, drew applicants from 26 states and 11 countries. Venture Velocity invests up to $250,000 per company after early traction, has funded 19 companies and produced one exit, Lyceum AI. Together the programs deploy nearly $3 million annually. Cintrifuse says its portfolio has more than 20 pilots or customer contracts with corporations including Fifth Third, P&G and Kroger. The organization also works with the City's Office of Strategic Growth & Innovation, and partners with REDI Cincinnati, JobsOhio and the Port of Greater Cincinnati Development Authority. Builder Fellows will launch a second cohort in 2027, and the Emerging Founder Residency will recruit its second cohort that year. Past exits include VNDLY, Ahalogy, Flamel, Lyceum AI and Amify.
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