Stories of Technology, Innovation, & Entrepreneurship in the Southeast

From Cincinnati Children’s Hospital Medical Center:

The well-known and respected hospital is using a multimillion-dollar allocation from the state to potentially launch new start-up companies based on tech its employees and physicians create, according to a report in Cincy Inno.

The medical center received approval for its Tomorrow Fund III LLC, a pre-seed fund that could be used to launch new companies – as well as boost existing ones. The state will provide up to $5 million in the form of a loan, an amount Cincinnati Children’s will match, meaning the allotment could hit $10 million.

From America’s Frontier Fund:

America’s Frontier Fund (AFF), a leading U.S. venture firm focused on frontier technologies, has announced its partnership with the U.S. Department of Defense (DoD) to drive innovation critical to national security and economic resilience.

As one of the first funds approved under the new Small Business Investment Company Critical Technology Initiative (SBICCT), AFF will spearhead investments aimed at developing and scaling transformative technologies that strengthen U.S. competitiveness and security. Through this partnership, AFF is set to advance solutions that will help fuel the next industrial revolution in America, securing America’s place in the face of global competition.

“America’s Frontier Fund has a singular mission: to identify and accelerate technologies that will secure the United States’ technology leadership,” said Jordan Blashek, Co-Founder and Managing Partner of AFF. “We’re honored to join forces with SBA (Small Business Administration) and DoD. Together, we will accelerate the next generation of innovation for America’s security and prosperity.”

From Redesign Health:

Redesign Health, a venture builder that empowers founders to launch and scale transformative healthcare companies, announced it has closed a $175 million investment for a new fund that will fuel healthcare company creation. Investment in the fund includes participation from Declaration Partners, Euclidean Capital, and True North Advisors.

Since 2018, Redesign Health has supported founders in launching more than 60 companies that have touched the lives of more than 15 million patients and generated more than $1 billion of revenue. With this latest fund, the company plans to partner with founders who are committed to transforming healthcare at a point of inflection for the industry.

From Energy Innovation Capital:

San Francisco, CA-based Energy Innovation Capital is joining forces with JBG Smith Properties, Amazon Web Services Inc., Virginia Institute of Technology, and New York consulting firm A&MPLIFY by Alvarez and Marsal to launch a new 40,000-square-foot business incubator space and accelerator program in Crystal City next year to support defense tech start-ups.

“Our mission is to provide fertile ground and capital for innovations that safeguard our security and help our nation and its industries generate reliable energy in ways that advance our national security and ensure our energy is clean, affordable, and accessible,” the team behind the Virtus Innovation Center writes on its website. “Through the creation of an integrated venture fund, incubator, and accelerator that facilitates collaboration among government agencies, corporations, universities, and start-ups, we will fulfill our mission in ways that not only benefit partners but unlocks a cycle of groundbreaking innovation.”

The space is expected to open in late 2025.

From the DC Venture Capital Fund:

District of Columbia (DC) Mayor Muriel Bowser has announced the launch of the DC Venture Capital Program, a new $26 million fund designed to make equity investments for early stage, DC-based tech companies, prioritizing underrepresented founders.

“Washington, DC is the best place in the nation to launch and grow a business. We know, however, that sometimes talent alone isn’t enough to succeed – and that is why the city has stepped in with a suite of innovative grants to help more entrepreneurs get their fair shot,” said Mayor Bowser. “This DC Venture Capital Program is about investing in people, jobs, and the future of DC’s tech economy.”

The DC Venture Capital Fund represents a transformative commitment to DC-based businesses by leveraging public dollars to attract private investment. For every dollar the District invests, private investors are required to contribute at least an equal amount, effectively doubling the total funding available to DC start-ups to a minimum of $52 million.

The new fund utilizes the State Small Business Credit Initiative (SSBCI) funding, provided to the District by the U.S. Treasury Department. SSBCI, created in 2010 and renewed as a part of the “American Rescue Plan Act” (ARPA) in 2021, is a federal program designed to drive business growth in states and jurisdictions across the country.

From INITIATE Ventures:

INITIATE Ventures has announced the close of $45 million in its debut venture capital fund and affiliated company creation platform. The new firm and fund invests in and co-founds transformative companies at the intersection of healthcare, life sciences, and technology. It is designed to empower bold ideas and exceptional entrepreneurs, leveraging the expertise of its experienced investor-operator team.

INITIATE is led by General Partners Jessica Owens and Iana Dimkova, who have decades of experience building and backing market-defining companies. Owens co-founded GRAIL, which was acquired in 2021 by Illumina Inc for $8 billion. She was formerly a partner at the venture capital firm Kleiner Perkins.

Prior to co-founding INITIATE, Dimkova was a Director in the healthcare technology investing group of GE Ventures. Prior to GE Ventures, she was with Alvarez & Marsal and a start-up that raised more than $700 million to build one of the largest networks of radiation therapy centers in the U.S.

From Slow Ventures:

Slow Ventures, an early stage venture capital firm based in New York, Boston, and San Francisco, is raising two new funds, including a $165 million Fund VI and a $110 million opportunity fund, according to two regulatory filings with the U.S. Securities and Exchange Commission. Both filings indicate that Slow Ventures has not yet raised funds toward either vehicle, although that could exclude existing commitments from its limited partners.

According to a post in Yahoo Finance, Facebook alum Dave Morin founded Slow Ventures in 2009, according to a TechCrunch profile, later adding former Facebook executives Sam Lessin and Kevin Colleran to the team. Colleran is now Managing Director and Lessin is a General Partner, though Morin left and founded a competing VC firm, Offline Ventures, with his wife in 2020.

Venture capital fund Dimension has closed its second round, this time a $500 million fund for entrepreneurs that are “pioneering at the vanguard of life sciences and technology,” according to a December letter penned by the firm’s three Co-Founders: Nan Li, Adam Goulburn, and Zavain Dar.

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