The Future Value Fund II (FVFII), a $6 million pre-seed and seed-stage fund, is being launched by Rev1 Ventures, a venture studio that assists businesses and entrepreneurs in accelerating innovation. The fund will support businesses in Central Ohio, with a particular emphasis on the underfunded technology startups in the area.
The Ohio Department of Development’s State Small Business Credit Initiative (SSBCI) Ohio Early Stage Focus Fund Program will match Rev1 Ventures’ $3MM contribution to the fund. Rev1 Ventures is able to meet the significant goal of this fund by reinvested returns from its prior ten years of investments in successful founders who have developed exceptional companies that have exited the market. Many of these businesses, like MentorcliQ and Updox, are still active and thriving in Central Ohio.
According to Crunchbase, the quantity of pre-seed investment rounds decreased by almost 50% in 2023, and total funding is at its lowest point since 2018. Without a doubt, companies are finding it more challenging to grow and encourage innovation as a result of the reduction in funding. In addition to helping these businesses with their short-term requirements, FVFII will assist the long-term viability of Central Ohio’s entrepreneurial ecosystem by generating employment and stimulating the local economy.
Over the course of a four-year investment period, the new fund will invest in about ten startups, with an emphasis on enterprise software as a service (SaaS), encompassing AI/machine learning, digital health/healthcare IT, future of work/HR tech, and insurtech, as well as cutting-edge technologies with strong ties to the local assets and industries.
Over the Fund’s lifetime, over $100 million in co- and follow-on investments are expected to be raised across all portfolio companies, with the companies expected to generate millions of dollars in revenue by 2028 and to contribute significantly to the creation of well-paying jobs in the technology industry, with an average salary of over $90,000 annually.
“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.”
Building on the success of Rev1’s Future Value Fund I, which debuted in 2021 and has supported eight Central Ohio firms that also receive assistance from Rev1’s venture studio, FVFII carries on Rev1’s steadfast dedication to pre-seed and seed-stage financing. Targeting businesses in the Community Development Financial Institutions (CDFI) investment categories and those with diverse founding teams, FVFII is presided over by an investment committee predominately made up of women.
In order to increase the number of possibilities available to underrepresented and marginalized founders, Rev1 is collaborating with numerous regional groups that support entrepreneurs, such as Adventi Enterprises, to offer accelerator programming to over 125 startups annually.
