Contact: Kelly Vogt Campbell
Sept. 18, 2023
Cortado Ventures Starting Final Close for Fund II
Oversubscribed at $80M
Midcontinent VC firm brings total AUM to over $110M in less than three years; four-times increase from initial Fund I
OKLAHOMA CITY — Cortado Ventures announced today that it has begun the final close of its oversubscribed $80 million seed Fund II. This funding close will bring Cortado’s total assets under management (AUM) to over $110 million in less than three years — one of the largest in the region — with a four-times increase from its initial Fund 1.
“With a focus on the underinvested, early-stage tech companies across energy, logistics, life sciences and future of work sectors, we have leveraged our relationships and knowledge of the Midcontinent region to build an ecosystem and create opportunity,” said Nathaniel Harding, Cortado Ventures managing partner. “Our focus and competitive advantage in this region has resulted in several exits with 10 times growth and exceeding $100 million. This Fund II close reflects a maturing startup ecosystem and continues our rapid growth in this area.”
To date, Cortado has invested in nine new companies from Fund II with a goal of 30 during the investment period with high interest from investors. Nearly 100 limited partners have made investments with 90% returning from Fund I, and new institutional investors, including several multi-family offices (MFO), banks, fund of funds, a large state agency, university and hospital foundations.
Recently, Cortado’s Fund II has invested in companies with Oklahoma and Midcontinent bases or strong ties, including Moat Biotechnology Corporation, which is developing nasal and oral vaccines for a number of infectious diseases, including SARS-Cov2; NUVIEW, revolutionizing the Earth observation industry by building the first commercial satellites designed to map the planet’s entire land surface with LiDAR; PayFactory, whose technology provides infrastructure enabling software companies to become payment facilitators; Mate Fertility, a people-centered approach to bridge the gap on affordable and accessible fertility treatment to a multitude of underserved communities; Moove.ai, uses cloud data and processing platforms to build AI-driven solutions with positive societal impact around vehicle data; and Motive, creating an all-in-one automotive retail experience.
Cortado’s Fund I, which closed in 2021 and raised $20 million, has invested in 28 companies to date, culminating in more than $700 million total enterprise value, and has achieved a top decile ranking at a 30% net internal rate of return (IRR) and 1.9 multiple on invested capital (MOIC). In terms of diversity, 87% of the team come from diverse backgrounds with 77% of the portfolio companies having a women, BIPOC or immigrant founder.
“Cortado Ventures recognizes the overcrowding of venture capital dollars on the coasts is creating an outsized opportunity for Midcontinent investors. Consequently, Cortado has built a strong community that is helping founders maximize their runway during the period their startups are most vulnerable. When it’s obvious that a firm is focused on the right things, it’s not surprising to see so many people want to be a part of it,” said James Rogers, Founder and CEO of Apeel.
Check out our newly launched podcast, The MidCon Markup, available at all places you can find podcasts and on YouTube. The MidCon Markup podcast uncovers the inspiring stories of our visionary tech entrepreneurs and the investors who believe in them. Listen, learn, and make your Midcon Markup!
The pilot episode features our Managing Partner Nathaniel Harding sharing his tips and tricks on how to raise a VC fund, sharing his personal experiences, obstacles and victories. Check it out on YouTube.
About Cortado Ventures
Cortado Ventures is an early-stage venture capital firm that invests in ambitious, growth-driven companies, backing a new generation of economic prosperity for Oklahoma and the Midcontinent region, defined as Oklahoma, Texas, Arkansas, Missouri, Colorado, Kansas and New Mexico. As one of the largest VC funds in Oklahoma, Cortado’s focus is on tech companies bringing innovative solutions to the energy and logistics, life sciences, and the future of work. For more information, visit cortado.ventures.