Starting in mid-June 2021, the New Ventures group internally tracked the data associated with transactions for all startup investments in which it represented at least one party, monitoring the number of transactions, gross dollar volume of each transaction, average gross transaction value, and data around standardized terms in the varying stages of transactions.

FY 2021 was a year of marked growth for venture capital and startup investments in the Midwest, and Thompson Hine represented either the investor or the startup in more than 17% of these transactions. The Q3 2021 Venture Monitor published by PitchBook and the National Venture Capital Association, notes that more than $7.7 billion of the venture dollars invested in the first nine months of the year were invested in Illinois and Ohio, representing over 3.2% of the total nationwide venture capital investment. Although the Bay Area continues to receive most of the funding, areas often classified as “nontraditional” saw upticks in sums of capital deployed, numbers of deals, and percentages of the venture market these regions comprise.

According to Lindsay Karas Stencel, a partner in the group and chair of the Fund Formation practice, “Tracking data like this is significant for several reasons. First, it allows us to see the magnitude of the volume of transactions processed. We knew we had a hand in most transactions in the Midwest, but tracking the data allowed us to confirm that. Second, it helped us to see the immense volume of transaction value that we have represented in our practice group. It certainly makes us proud to know that while states like Illinois and Ohio are seeing record gross transactional volume, we’ve had a hand in many of those transactions, and based on our pipeline, we don’t expect it to slow anytime soon.”

Between June and the end of 2021, the New Ventures group closed more than 120 separate transactions and represented companies in 38 states. The average gross transaction size of a round in which Thompson Hine represented either the startup or one or more investors was over $11.5 million. “This was a great year for our group, with so many transactions and a few larger ones too, registering north of $100 million per round,” says Cleveland New Ventures partner Sean Ganley.

The gross dollars represented during the six-month period exceeded $1.41 billion. “We are excited to see the continued growth of transactions and dollars invested in the Midwest and certainly happy to be a trusted and instrumental part of so many of the deals that have happened,” says partner Layla Dotson Lumpkin of the firm’s Chicago office.

FY 2022 is seemingly off to a similar start, with several transactions already in process, so the trend of increased capital flow to the Midwest appears to be continuing, and Thompson Hine’s New Ventures group will be tracking the metrics along the way to monitor shifts and changes.