Ohio Gateway Tech Fund launches
September 27, 2022
Ohio Gateway Tech Fund is a $10M Ohio-based pre-seed fund focused on fedtech and dual-use technology startups with a defined value proposition and pathway to market — and it’s open for business.
The fund seeks to invest in approximately 14 early-stage technology companies, either in Ohio or willing to relocate to Ohio, prior to June of 2025.
Hale Capital Partners is the sole investment partner and General Manager of The Ohio Gateway Tech Fund. Hale Capital Partners currently has $160M+ assets under management, relationships within the Department of Defense, and a history of successful investment in early-stage technology startups.
Is Ohio Gateway Tech Fund a fit for you?
Ohio Gateway Tech Fund will prioritize the following industries:
- Aerospace and Defense
- Telecommunications
- Artificial Intelligence (AI/ML)
- Cyber Systems
- Augmented and Virtual Reality
- Automation and Robotics
- Software as a Service (SaaS)
The fund will have the following investment focus:
- Ohio Pre-Seed and Seed
- Valuation < $5M
- Fed Tech or Dual-Use
- Validated Market
- Differentiated Technology
- Strong Founder/Team
- Defense Spinouts
- Startup Restarts
- Startup Recapitalization
Investment expectations and requirements:
- The fund expects equity-based investments, typically for preferred stock in the startup
- SAFE and Convertible notes will include discounts and conversion ceilings
- At the earliest, a startup must be established with an identified pathway to market
- At the latest, a startup must have less than a year of commercial sales of solution
- Required to be registered in Ohio with OGTF as a party to operating agreement.
- Required board seat or observer rights at a minimum for investment
- Startup must be able to succinctly articulate target customer, value proposition, serviceable market, and pathway to market
- Solution must be a minimum technology readiness level (TRL) 3
- Startup has sustainable differentiation from existing or emerging solutions in the market
- Startup leadership can articulate the competitor landscape and gold standard
Valuations will be determined on a case-by-case basis specific to each startup. OGTF is a pre-seed fund and, as such, post-investment valuations can typically be expected to range as follows:
- $500K-1M (less than 6 mos since founding or limited velocity)
- $1M-2.5M (Established startup with founding team and initial funding for development)
- $2.5-5M (Near-market solution with defined customers and commercial path)
For more info, contact:
- Paul Jackson, Entrepreneurs’ Center: [email protected]
- Jordan Roe, Entrepreneurs’ Center: [email protected]
- Nate Foos, Hale Capital: [email protected]
- Eric Wagner, Ohio Gateway Tech Fund: [email protected]
