COVINGTON, Ky. — A growth investment firm says it sees some of the potential of Silicon Valley in northern Kentucky.
More than $100 million in new funding is going to be put to use by local tech companies in the region.
eGateway Capital is a growth equity firm focused on the future of digital commerce. The firm concluded its largest fundraiser to date in August, securing $94 million to invest in growth stage technology companies digitizing commerce and supply chain. The firm has raised $120 million to date through two funds.
Madeline McIntyre, head of Investor Relations, said there’s a reason the firm is headquartered in Covington.
“What’s happening in Silicon Valley from a very early stage perspective is a little bit harder to be replicated here in the middle of the country. And what we think our advantage here in the middle of the country is not necessarily the incubation. While that’s happening, we believe this is the best place in the world to scale a company,” she said.
The tech companies the firm invests in are focused on four pillars: how things are made, how things are marketed, how things are sold, and how things are distributed. McIntyre said part of the goal is to help link these companies up with some of the bigger corporations in the region, like Kroger, Proctor and Gamble and the Cincinnati/Northern Kentucky International Airport.
“Being able to walk into one of these large corporations and on day two say we have a technology company that’s prepared to serve you when they start,” McIntyre said.
Some of those companies will be housed at Sparkhaus in Covington, which McIntyre said will be a hub for innovation.
eGateway Capital has already invested in three companies in Fund I, and nine companies out of Fund II, with the intent to invest in five to 10 additional companies during the remaining investment period.
The firm’s 12 investments sit across their four investment pillars: 80 Acres (How Things are Made Pillar): VIZIT, Firework, Vidmob (How Things are Marketed Pillar), Flip.shop, SamCart, AUI.AI (How Things are Sold Pillar) and Flowspace, Cargomatic, Overhaul, NOK Recommerce, OneRail (How Things are Distributed Pillar).
Chad Summe, managing partner of eGateway Capital, said “We are full of gratitude to have received such confidence in our work and mission, from so many regional leaders and strategic investors. The impact of our investor community is impossible to quantify, and we are working diligently to exceed their expectations.”
Mike Veith, a founding partner of eGateway Capital, added, “It’s been an honor to work with our investors and portfolio companies so far, and we are thrilled to have completed our fundraise in a historically challenging time for new private capital firms. We look forward to delivering on the promise of providing exceptional returns to our investors and serving our portfolio companies every day.”