Valley Growth Ventures, whose founding partners include Youngstown State University, has begun talks with a healthcare-focused startup that could result in its first investment.
Valley Growth Ventures, a micro-VC fund launched by partners including Youngstown State University, has closed a $6m vehicle featuring commitments from 44 private investors.
The private investors supplied a total of $3m, matched by state-owned economic development agency Ohio Third Frontier’s Pre-Seed/Seed Plus Fund Capitalization Program.
Valley Growth Ventures was created in 2016 by partners including Youngstown State University, through its investment arm YSU Research Foundation, healthcare provider Mercy Health, Ohio Third Frontier and Ohio state-backed Youngstown Business Incubator.
The partners also include Ohio Third Frontier, US government-backed research unit Tech Belt Energy Innovation Center, and public-private partnership Mahoning Valley Economic Development.
The fund will seek out investment opportunities primarily in Ohio’s northeast and Mahoning Valley. It will focus on the business-to-business software, IT, energy, advanced materials and additive manufacturing sectors.
The vehicle has no official minimum or maximum investment threshold, though ticket sizes are expected to range up to approximately $500,000.
Corey Patrick, a spokesperson for Valley Growth Ventures, told news publication Crain’s Cleveland Business the vehicle is now “fully operational” and has opened funding talks with an unspecified healthcare-focused company.
Barb Ewing, chief executive of Youngstown Business Incubator, said: “Access to capital is always a struggle for companies at this stage, so having a fund like Valley Growth Ventures will help our startups get to market faster.
“And, since deals follow the money, it should also help to attract new companies to the region as well.”
