We need more locally managed venture capital in Columbus, Ohio
The number of viable early stage companies is growing rapidly in the Columbus Region and throughout Ohio, increasing opportunities for venture capital investment. Early stage companies in the Columbus Region typically have lower cost structures, which facilitate more efficient capital use, more rapid and sustainable growth potential, and reduced time-to-scale.
The time and entrepreneurial climate are right in Ohio and the Columbus-region for more locally managed venture capital.
The State of Ohio boasts the 7th largest economy in the United States and has the 21st largest economy worldwide. It is home to headquarters for 160 INC 5000 companies and 20 Fortune 500 companies.
Ohio has no corporate income or profits tax. It has no tax on products sold outside of Ohio. It does not impose tax on machinery and equipment investments. There is no tax on R&D investments. There is only one state business tax – the Commercial Activity Tax (0.26%). From 2012-2017, Ohio cut taxes by $4.9 billion – the largest tax cut by total in the U.S.
The Columbus Region is the No. 1 Midwest regional growth leader in population, jobs, and GDP. Dominant industries include: banking/financial; insurance; health care; logistics; automotive; and technology generally.
Finally, the Columbus Region has a deep talent pool. It is highly educated, diverse, and young. There are 52 colleges and universities in the Region. It has the 8th highest concentration of millennials in the United States. The Columbus Region is culturally, ethnically, and racially diverse.
We need locally managed and deployed venture capital to sustain the growth of the entrepreneurial ecosystem that has begun to form and flourish in the Columbus Region.