Ohio pumps $50m into Drive Capital

Ohio State University has invested $50m into venture firm Drive Capital in a deal to retain more talent to the surrounding area.
The deal has attracted press scrutiny, as both the ex-president of OSU Gordon Gee, who retired shortly before OSU made the financial commitment to Drive Capital, and Drive’s co-founder Mark Kvamme, who moved from a venture capital position in Silicon Valley to Ohio to lead economic development efforts in 2011, are both closely tied to Republican Governor John Kasich.
Kvamme was previously in charge of the governor’s signature private jobs programme JobsOhio, while Gee retains a seat on the board. While a Kasich spokesman denies that the Governor lobbied Ohio State for the public money on Kvamme’s behalf, it remains unclear who recommended the investment or whether its selection was competitive.
Despite the origins of the deal, it remains an important one to retain OSU alumni in the area, with Drive Capital focused on investing within the region.
Kvamme said: “We believe in the opportunity in Ohio and the Midwest to create world-changing technology companies. It is important that people here understand our goals and objectives for the region.”
Gee added: “I’m very glad the priority of investing in education, certainly research and job-creation that I championed as president (has continued) with my successors. And their support for innovation, as evident by this decision to invest in Drive Capital, enhances these opportunities.”