June 1, 2006
QCA Forms Second Technology Fund with $1 Million Match from State
Funds to be used to invest in young, innovative companies; spur job creation.
CINCINNATI – May 31, 2006 – The Queen City Angels (QCA) today
announced that it will begin accepting applications from
companies for funding by the QCA First Fund II. QCA has been
awarded $1 million in matching funds through the State of Ohio’s
Third Frontier Action Fund and has formed the $1.5 million QCA
First Fund II, a second seed-stage fund. The state’s funds are
the second $1 million that has been awarded to QCA. As with the
initial fund, this award was contingent on raising $500,000 of
matching funds from local investors . Tri-State Growth Capital
Fund I L.P., QCA’s partner in the first QCA First Fund, is also
an investor in this new fund. QCA is affiliated with C-CAP,
Cincinnati’s non-profit angel capital hub.
The QCA First Fund II was established to help small companies
reach critical business milestones to prepare them for
additional investment from conventional sources, including QCA.
The typical investments will be in the $50,000-$100,000 range,
and are made at an earlier stage than the Queen City Angels
would normally invest outside the First Funds.
“Our First Funds fill the gap between the entrepreneur’s
‘friends and family’ resources, and normal angel investments,”
said Jim Cunningham, executive director of C-CAP. “This
financing has been the missing link in financing for many
entrepreneurial startups. There are a significant number of
entrepreneurs who, with some additional capital and mentoring,
could quickly move their companies forward. There are over 20
active funds in the state, so the money is available for growing
companies. QCA investors are focused on helping businesses in
this region be successful, and we have a group of talented
investors that are eager to share their knowledge and
experience.”
The QCA First Fund has already invested in nine area companies,
providing mentoring and guidance to the portfolio companies, in
addition to investment capital. One of the fund’s recipients,
Fortis Security Systems, used the investment to start a new
company from scratch.
“QCA First Fund led the investment round that allowed us to
start our business. They believed in our vision and helped us
get the start-up capital we needed,” said Kirk Williams,
co-founder of Fortis Security Systems. “Members of the Fund have
continued to help us as we grow; lending advice and helping us
establish important business connections. A resource like this
is certainly valuable to the community.”
Like the QCA First Fund, the goals of the QCA First Fund II
include:
- Create new, desirable jobs in Ohio;
- Attract additional talent to Ohio;
- Impact overall economic viability of the region;
- Commercialize technology that might have been lost otherwise; and
- Provide mentoring opportunities for fund members.
“In addition to looking for opportunities to invest, the QCA
is also actively looking for qualified investors to be a part of
our Angel organization,” added Cunningham. “The state has
already committed to match our Angel dollars two-for-one, so
investors have a great opportunity to participate with a
dedicated group of individuals in the economic development of
the region, as well as the opportunity to potentially earn a
good return on their investment. We have the firm support of the
State of Ohio, and an active group of Angels that is looking to
grow. With more Angels and more funds, we can look at more
investment opportunities, and actively help create jobs and grow
businesses.”
About Queen City Angels
The Queen City Angels (QCA) is the first group of
experienced, accredited investors committed to accelerating the
growth of outstanding early-stage businesses in the Cincinnati
area and the surrounding region, via smart investments capable
of producing a substantial return. The Angels currently include
a substantial number of business leaders form the region,
counting many former CEOs and founders of successful companies
as investors. QCA operates with administrative assistance from
C-Cap, the region's capital resource hub. QCA is interested in
funding ventures of promise across a spectrum of industries,
building the best new ventures through intelligent investment in
the region's future. For more information about QCA, visit
www.qca.com.
