CincyTech
Restoring Seven Years of Funding to Cincinnati’s Small Businesses in Tech
The Client
CincyTech is the leading seed stage investor in regional high growth startups, which drive economic growth for the region as a whole- importing capital, generating revenue and creating jobs. For every $1 invested by CincyTech, $20 is invested from other private capital sources to drive startup growth. CincyTech has seeded 45+ companies in the City of Cincinnati.
The Results
CincyTech was able to match this City funding with existing state funding to double their public dollars. The jobs created from this local and state funding alone generate hundreds of thousands of dollars in income tax for the City. Overall, this investment was a ‘win’ for CincyTech and a ‘win’ for the City of Cincinnati.
The Challenge
The City of Cincinnati is facing an impending income tax deficit, meaning many pools of community funding at the City level were decreased. Leveraged support funding, the pool from which community organizations can apply for and receive money from the City, was reduced by roughly 75% from the year before. As a result, CincyTech, who had received funding from the City since 2015, had their slated funding reduced in the original draft of the budget.
The Solution
DSD Advisors got to work talking to the Mayor, the City Manager, and all members of City Council to advocate on behalf of CincyTech to receive restored funding. By encouraging the City that CincyTech’s mission was aligned with their values, we were able to restore CincyTech’s funding to 90% of what they had received the previous years, despite a 75% decrease in overall available leveraged support funding.