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Startups’ cash flow slows Many Ohio venture capital firms are out of money to invest By CHUCK SODER csoder@crain.com
Venture capital is becoming a scarce commodity in Northeast Ohio. The amount of money invested
in local startup companies has plummeted over the past several months, and it isn’t expected to bounce back quickly. That’s because many venture capital firms in Ohio have no more money to invest. Some, including active local
firms such as Early Stage Partners and Glengary LLC, aren’t immediately planning to raise new funds. If the amount of venture capital invested locally continues to shrink — a trend that’s also playing out nationwide — it could spell trouble
for the region’s growing community of startups, said Ray Leach, CEO of JumpStart Inc. of Cleveland. It also could throw a wrench into work done by JumpStart and several other organizations created over the past decade to provide seed money and services to young companies.
INSIDE Equity is standing tall Brad Kowit’s group made a $3.4 million cash purchase of Lakewood Center North. The February deal is one of many recent big buys in the area in which brokers are avoiding taking out a bank loan. PAGE 3
See STARTUPS Page 24
ANALYSIS
Cleveland is coming together
h, Gee ... Could a local university president be a candidate to replace the man on the left? Find out on PAGE 3.
Proposed downtown redevelopment is a welcome display of unified leadership By JAY MILLER jmiller@crain.com
suitable partner to challenge Baltimore’s Johns Hopkins and the like on the uppermost tier of American medical education. And officials with both organizations indicate the 165,000-squarefoot medical school building slated for construction near the Clinic’s iconic Sydell & Arnold Miller Family Pavilion on Euclid Avenue is just
Politicians at the federal level are mired in legislative conflict, and the legislative and executive branches of Ohio’s government have been Jackson miles apart for months on tax policy for a budget that must be agreed upon in less than three weeks. It took local government in Cuyahoga Coun- FitzGerald ty to demonstrate what a little cooperation can set in motion. Cleveland Mayor Frank Jackson and Cuyahoga County Executive Ed FitzGerald last week agreed to pool their financial resources and work together to connect downtown Cleveland from Public Square to the
See CLINIC Page 21
See CLEVELAND Page 26
Clinic is digging deeper into education Partnership with Case could help establish health care giant as a force in teaching, too; more buildings possible in future By TIMOTHY MAGAW tmagaw@crain.com
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Not content only with world renown as a cardiac center, the Cleveland Clinic — in a single
stroke of a pen — boldly is embarking on a path to challenge America’s pre-eminent medical education centers. It’s a new future that will start with a gleaming new medical school building on its explod-
ing campus near University Circle, but it likely won’t end there. The Clinic last week unveiled an $80 million alliance with Case Western Reserve University, ending a long search by the Clinic for a
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SPECIAL SECTION
HIGHER EDUCATION Colleges are placing more emphasis on helping students graduate ■ Pages 15-20 PLUS: SUMMER SCHOOL ■ PROFESSORS AS RECRUITERS ■ & MORE
Entire contents © 2013 by Crain Communications Inc. Vol. 34, No. 23