Valley Growth Ventures
  • Home
  • About
  • Investment Strategy
  • Team
  • Portfolio
  • Contact
  • Partners
  • News

VGV News & Updates

5 Ways Micro Venture Firms Support Budding Startups

9/23/2020

0 Comments

 
Picture
It is often a startup’s dream to be funded by a big venture capital firm. However, larger venture capital firms often seek to fund startups that are further along the development cycle with a product that has proven its value within the market. But what about startups that are still early in their search for product market fit?  
 
That’s where micro venture capital firms and funding come in.  
 
For seed stage startups, micro VC funding is a great option. Micro VCs are smaller investment firms that fund seed-stage emerging growth companies. According to Early Growth Financials, the fund is typically under $50M, and invests between $25K - $500K in startup companies, unlike traditional venture capital firms that usually fund between $1M and $5M in the later stages. Micro VCs typically invest less broadly and more specifically within an industry or geography.  
 
Why are micro VC firms imperative to the startup journey? Here’s 5 ways… 
 
  1. Aside from access to capital, micro VC funding has great benefits. Micro VC firms can assist startups in building capital-efficient businesses. GritDaily wrote that they can help startup companies prioritize their investments and minimize risks in the earlier stages, positioning them well for larger VC firm screenings and to generate momentum for future success. 
 
  1. According to The Venture Alley, micro VC firms are more tolerant to unknown risks that many startup companies see in the early stages of development, or when entering a new market.  
 
  1. Micro VC funding gives newer companies the opportunity to experience trial and error and growing pains while establishing a track record of success for consideration in later stages of funding.  
 
  1. Partnership interests almost seem equal to the startup’s interest because quite frankly, both the firm and the company must perform well to yield success.   
 
  1. Many micro VC leaders came from previous positions with traditional VC firms. This is a leg up for startups who partner with them as leaders have a keen eye for successfully funded businesses and how to help manage them.    
 
If you’re a tech startup or small organization in northeast Ohio and you’re interested in partnering with a micro venture capital firm, we can assist you. Our scalable micro venture capital model is created to support high-growth companies leveraging our industry expertise, network, and investment team. 

​Contact us today at 
info@valleygrowthventures.com to learn more about our investment program and how we can help grow your vision.   
0 Comments

Ohio'S RISING TECH COMMUNITY

9/9/2020

2 Comments

 
Picture
Ohio’s technology space is exponentially growing. While it doesn’t resemble tech metropolis’ like Silicon Valley or Seattle, Ohio’s tech space is thriving and has an adaptable base for tech companies large and small. The state is known for some of the best cybersecurity initiatives in the country, has the foundational tech resources, and a large industry of people who have invested their careers in this space.  

While the big tech cities have created generational success for booming IT communities, the costs to open, house, and sustain business continues to increase, and small businesses and startups tend to look elsewhere to build. That’s where Ohio comes into play – known for its industrial roots, Ohio has architecture and resources for new businesses to thrive. Companies can operate at lower costs compared to other tech-centered locations due to its lower cost of living and housing. 
 

Ohio’s largest cities help lead the way.  Cleveland, once primarily an industrial economy, is home to significant platforms including the world-renowned Cleveland Clinic.  Also, it’s the only state that has two cities, Columbus and Cincinnati, named in Forbes’ Top 10 Rising Cities for Startups. According to Jobs Ohio, Ohio is home to more than 25 incubators and accelerators, 15 venture capital funds, 15 angel funds, and provides mentorships from Fortune 500 and 1000 companies – all which made this recognition possible. 
 

​There are many examples of Ohio’s startup success.  For example, after raising more than $32M, cloud-based human capital software-as-a-service company, 
Onshift, projects more than 5% market share, accelerated growth, and continued acquisitions in 2020. TOA Technologies is another Cleveland-OH (Beachwood) based startup driving growth for Northeast OH.TOA Technologies is a cloud-based field service solution that optimizes customer service for enterprises by coordinating and managing activities between dispatchers, mobile employees and their customers. Since opening in in 2003, TOA achieved $99.8 M in funding, and was later acquired by Oracle in 2014. 

Ohio also has the skill set to support startups – the state’s pipeline of students and employees who’ve centered their careers around technology is vast and continues to grow. Ohio averages 6,200 IT graduates each year, and 295,000 Ohioans already work in the industry.  Programs like Per Scholas, Black Tech Columbus and Level D&I focus on bringing diversity to tech, seeking out more Black people, women, and other minority groups to pursue technology careers.  

With 24 Fortune 500 companies and 54 Fortune 1000 companies, it’s safe to say that big companies seek Ohio out to plant their roots. Google, IBM, Amazon Web Services, and Facebook are several companies that sought out the Midwestern state, making it a hub for big data. 

 Ohio’s governmental programs, grants and loans also make it an attractive state for the IT community. Through the Ohio Development Services Agency, Ohio Third Frontier seeks to help the state build its IT community and resources. Several grants and loans are available to businesses, like the Technology Validation and Start-up Fund, which provides direct capital funding, and the Pre-Seed/Seed Plus Fund Capitalization Program that contributes funding for capital, talent, and services. More information on Ohio Third Frontier can be found here.  

Even with the current recession, Ohio still stands out as a state for growing technology businesses large and small. By combining resources and expertise, the state makes it easy for companies during the decision-making process and sets companies up for long-term success. Ohio makes it possible for new companies by leveling the playing field, providing everybody, everywhere a shot at building a company and the American Dream. 

2 Comments

    Archives

    March 2023
    January 2023
    December 2022
    September 2022
    July 2022
    May 2022
    November 2021
    August 2021
    July 2021
    June 2021
    May 2021
    April 2021
    March 2021
    February 2021
    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    February 2019
    January 2019
    December 2018
    August 2018
    March 2018
    November 2017

VALLEY GROWTH VENTURES
​
Copyright © 2021

  • Home
  • About
  • Investment Strategy
  • Team
  • Portfolio
  • Contact
  • Partners
  • News