Cortado Ventures Raises $20M - Oklahoma City Funding

Cortado Ventures Secures $20 Million Midwest Fund

Cortado Ventures believes significant investment potential remains untapped within the Midwestern United States. To address this, the firm has successfully raised $20 million, establishing what is currently Oklahoma’s largest venture fund.

Fund Leadership and Origins

The firm is guided by partners Nathaniel Harding, David Woods, and Mike Moradi. Harding, a former oil and gas entrepreneur and angel investor, detailed in a Medium post how discussions regarding an Oklahoma-based venture capital fund began as early as 2017 with Moradi.

Initial plans called for the firm – focused on seed and Series A investments – to launch approximately a year ago. However, the onset of the pandemic heightened their sense of urgency.

Pandemic's Impact and Investment Thesis

“The pandemic brought increased attention to the necessity of diversifying Oklahoma’s economy and fostering the creation of technology jobs prepared for the future,” Harding explained. “We also observed a growing expectation that innovation and startups would flourish, and that the pace of technological disruption and adoption would accelerate.”

Harding further stated that the timing for launching a new company had never been more opportune, a sentiment shared by their investors.

Early Investments and Portfolio

Despite recently reaching its $20 million cap, the fund has already made investments in nine startups. These include RespondFlow, a text marketing company located in Tulsa, Socialwyze – based in Dallas and focused on providing flexible work opportunities for the underemployed – and Mito Material Solutions, a hybrid materials startup in Stillwater.

Cortado Ventures was founded on the premise that the region was significantly “underfunded.” However, Harding clarified that the firm does not impose any geographical limitations on its investments.

“Our investment decisions are driven by the merits of the company itself, rather than its location,” he said.

Entrepreneurial Landscape in Oklahoma

Harding highlighted Oklahoma’s abundance of entrepreneurs with experience in established sectors such as energy, aerospace, agriculture, and manufacturing. The firm’s Oklahoma City base has not hindered its ability to support a diverse group of founders.

He noted that the majority of their portfolio companies are led by women, people of color, and first-generation immigrants.

Future Funding Needs and Ecosystem Growth

Regarding the need for additional later-stage firms to support the growth of successful startups within the regional ecosystem, Harding responded that early-stage funding tends to be more localized.

“However, as companies reach nine-figure valuations, they become more widely recognized. Funding for Series C and D rounds opens up to a global investment market,” he concluded.