Amid Volatility, 2022 Advanced Exits, Investments, and the Entrepreneurial Activity in Central Ohio
Rev1 Ventures is part of an exciting, ever-changing industry that operates at the intersection of innovation, entrepreneurship, and investment capital, often referred to as Venture Development.
The result of this intersection here in Ohio is the creation of many new high-growth businesses. These businesses are founded on state-of-the-art products or processes and typically have some level of proprietary technology or status. On any given day we might be working with entrepreneurs developing proprietary software, with acclaimed research scientists commercializing breakthrough life science, or with corporate innovators identifying new market disruptors.
The past decade has seen a great deal of volatility in funding availability, valuations and exit opportunities. Over the past ten years, the venture capital industry hit new records each year, with the amount of venture capital invested reaching its zenith in Q4 of 2021. That milestone was followed by precipitous declines in each quarter of 2022. Further, compression in the publicly traded market values had a chilling impact on venture-backed IPOs with the overall exit market for entrepreneurs and investors ending Q4 2022 at 2016 levels.
In spite of these challenges, 2022 was a strong year for Rev1 Ventures. Our portfolio reversed national exit trends, allowing us to provide strong distributions to our community investment partners. These returns came from companies we’ve supported for many years that reached impressive maturity in 2022.
The success of those companies validates the viability of our business model. As the pipeline of entrepreneurs and innovative new companies in Central Ohio continues to grow, we are adapting the way we support new pre-seed and seed-stage companies. In 2022, we helped 56 of these companies raise more than $250,000 in critical early-stage capital and a total of 40 companies raise more than $1M. That’s a strong pipeline of entrepreneurial startups added to Ohio’s economy.
This Impact Report summarizes the many accomplishments of our community of entrepreneurs, innovators, and investors. It is something to be proud of, especially considering all that we have been through, beginning with the pandemic in 2020 and the resulting backdrop of recent market conditions. When we think about the many achievements of these businesses during these volatile times, it really is extraordinary.
We extend a special thanks for our Board Chairman Andy Rose, CEO of Worthington Industries, whose three-year term ended in January. We celebrate all the accomplishments under his leadership and welcome our new chair, Tim Robinson, CEO of Nationwide Children’s Hospital.
The Columbus community has been steadfast in supporting Rev1’s efforts to launch and build a startup infrastructure and economy. We are excited about the success of the entrepreneurs and companies that we support. Our programs will continue to mature and adapt to the evolving needs of entrepreneurship in Central Ohio. As the pipeline of entrepreneurs and innovation continues to grow, our future is bright.