Rev1 Ventures Launches $6MM Pre-Seed Fund Targeting Companies Underserved by Venture Capital

Future Value Fund II Closes Capital Gap to Support More Tech Startups in Columbus

COLUMBUS, Ohio, May 1, 2024 /PRNewswire-PRWeb/ —┬áToday, Rev1 Ventures, the venture studio that helps entrepreneurs and corporations accelerate innovation, is launching the Future Value Fund II (FVFII), a $6MM pre-seed and seed-stage fund to support Central Ohio companies, focusing on the region’s technology startups that are underserved by venture capital. Rev1 Ventures is committing $3MM to the fund, which will be matched by the Ohio Department of Development State Small Business Credit Initiative (SSBCI) Ohio Early Stage Focus Fund Program. Rev1 Ventures is able to support this fund’s important mission by reinvesting returns generated through Rev1 Ventures’ previous investments in successful founders over the past decade that built great companies that have exited. Many of these companies, such as Updox and MentorcliQ, continue to operate and thrive in Central Ohio.

The number of pre-seed funding rounds was down nearly 50% in 2023, and overall funding has been at its lowest level since 2018, according to Crunchbase. Undoubtedly, this decrease in financing is making it difficult for startups to scale and foster innovation. FVFII will support the immediate needs of these startups while contributing to the long-term sustainability of Central Ohio’s entrepreneurial ecosystem, including creating jobs and economic development locally.

Rev1 is committed to supporting companies at the earliest stages of growth by providing founders access to funding, industry advisors, and connections that can help them succeed, and we continue to focus on helping make Ohio one of the best places to launch and scale great technology companies.

“The capital gap is a real issue for growing the startup economy – and we have seen that even more so with pre-seed and seed-stage startups, where closing a meaningful round in a reasonable time frame can be incredibly challenging,” said Ryan Helon, EVP Investment Funds of Rev1 Ventures. “Rev1 is committed to supporting companies at the earliest stages of growth by providing founders access to funding, industry advisors, and connections that can help them succeed, and we continue to focus on helping make Ohio one of the best places to launch and scale great technology companies.”

The new fund will invest in approximately ten startups over a four-year investment period, with a focus on enterprise SaaS, including AI/machine learning, digital health/healthcare IT, future of work/HR tech, and insurtech, as well as advanced technologies with strong connections to the industries and assets in our region. The Fund is projected to deliver significant economic impacts, raising over $100 million in co- and follow-on investment across all portfolio companies over the life of the Fund, with companies generating millions of dollars of revenue by 2028 and fueling the creation of high-paying technology industry jobs with an average salary of $90,000+ / year by 2028.

FVFII continues Rev1’s strong commitment to pre-seed and seed-stage investing and builds on the momentum of Rev1’s Future Value Fund I, which launched in 2021 and has backed eight Central Ohio startups that also receive support from Rev1’s venture studio. FVFII is led by a majority woman investment committee and is targeting companies in Community Development Financial Institutions (CDFI) investment areas and companies with diverse founding teams.

To expand the pipeline of opportunities to underserved and underrepresented founders, Rev1 is working in partnership with many regional entrepreneur support organizations, like Aventi Enterprises, to provide accelerator programming to more than 125 startups each year.

To learn more about the Rev1 Future Value Fund II, visit visit http://www.rev1ventures.com.

About Rev1 Ventures Rev1 Ventures is the venture development studio that helps tech startups scale and corporates innovate. A top seed investor in the Midwest, Rev1 supports and invests in early-stage companies in software, life sciences, and other advanced technologies through Rev1 Capital while fueling innovation and a thriving tech ecosystem for startups and corporations alike. By leveraging its network of corporate, community, and research partnerships, Rev1 helps high-growth companies validate customers, build teams, and access funding while enabling corporate partners to identify, source, and invest in startups. This unique approach breeds innovation, improves startup success rates, and helps entrepreneurs build great companies.

Ohio State Small Business Credit Initiative (SSBCI) Ohio was approved by the U.S. Department of Treasury to receive funding through the federal State Small Business Credit Initiative (SSBCI) to support small businesses across the state. Ohio initially will receive $52.4 million to support socially and economically disadvantaged individuals and very small businesses. After performance targets are met, Ohio will qualify for a total of up to $182 million.

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