In a significant expansion of the venture capital landscape, Oklahoma City-based Cortado Ventures, co-founded and led by General Partner Mike Moradi, is championing seed-stage frontier technology companies across the U.S. Midcontinent. The firm’s distinctive thesis posits that the most effective innovators for transforming critical industries are often those who have intimately experienced these sectors. By strategically connecting their deep industry knowledge with crucial capital, customer access, and an extensive support network, Cortado Ventures is actively fostering new hubs of American innovation beyond traditional coastal centers. This approach is not merely about identifying promising startups; it’s about a deliberate strategy to unlock latent potential in regions historically underserved by venture capital, thereby broadening the map of technological advancement and economic opportunity across the nation.
The Genesis of a Founder-First Philosophy
Mike Moradi’s journey into venture capital is deeply rooted in his extensive and often challenging entrepreneurial background. A six-time founder, Moradi has navigated the complexities of launching and scaling companies in technically demanding fields such such as biopharmaceuticals and nanotechnology. His initial foray into entrepreneurship, a bold pivot from dental school, ended in failure. This early setback, however, proved to be a foundational experience, instilling in him an unwavering resilience and a commitment to perseverance. "The lesson was to keep pushing past every obstacle, to not be discouraged by hearing the word ‘no,’ and to stay the course," Moradi recounts, highlighting the tenacity that would define his career.
This initial failure was followed by notable successes. One of his subsequent ventures achieved rapid growth and was acquired by a Fortune 100 company, demonstrating his capacity for building high-value enterprises. A later San Francisco Bay Area startup also achieved an acquisition, but not before confronting near-collapse despite securing an $18 million Series B financing round. This particular experience offered a crucial insight: while capital can accelerate a company’s trajectory, speed alone is detrimental if the business lacks a clear direction or readiness for scaling. Moradi observed, "A high valuation and a full bank account will happily let you scale the wrong thing." This pivotal lesson underscored the importance of coupling entrepreneurial optimism with rigorous evidence, strategic discipline, and a precise understanding of a company’s immediate growth imperatives. It is this blend of first-hand experience—both the triumphs and the tribulations—that underpins Cortado Ventures’ ethos: a firm built by founders, for founders, prioritizing astute timing and sequenced capital deployment over mere infusion of funds.
The Midcontinent Advantage: A Strategic Imperative
Cortado Ventures’ investment strategy is predicated on a profound belief in the strategic advantages offered by the U.S. Midcontinent. This vast region is a hotbed of critical industries ripe for technological disruption, including energy, aerospace and defense, healthcare, manufacturing, mobility, and logistics. These sectors are characterized by complex physical infrastructures, entrenched supply chains, and demanding customer relationships, making them challenging yet incredibly fertile ground for innovation. Successfully transforming these industries requires more than just compelling software; it demands a deep, nuanced understanding of their operational intricacies.
Cortado actively seeks out experienced technical founders who possess this invaluable industry-specific knowledge. These are individuals who may have spent years embedded within hospitals, factories, laboratories, energy companies, or logistics networks before identifying a unique opportunity to solve persistent problems through innovative solutions. Their lived experience provides unparalleled credibility with customers, practical insights into implementation challenges, and a depth of knowledge that would be nearly impossible to acquire from an external perspective.
The geographical location itself serves as a significant competitive advantage. The Midcontinent offers unparalleled proximity to these critical industries and their potential customers, providing a natural testbed and market for new technologies. The region also boasts a robust technically skilled workforce, nurtured by strong research institutions and universities. Furthermore, complementary public funding initiatives often exist, and perhaps most importantly, company-building costs in the Midcontinent are significantly lower than in traditional tech hubs. This cost efficiency allows startups to extend their runway, experiment more, and achieve meaningful milestones with less capital burn.
Cortado’s portfolio vividly illustrates the breadth of innovation emerging from this environment. The firm has invested in companies applying cutting-edge technologies across diverse fields such as space communications, industrial safety, critical infrastructure cybersecurity, advanced manufacturing, healthcare, energy, and mobility. This strategy is not merely an attempt to redress historical underinvestment in the Midcontinent; rather, it is founded on the conviction that direct proximity to hard, real-world problems inherently produces differentiated companies capable of generating strong returns. As Moradi succinctly puts it, "Talent is not concentrated anywhere in particular. Capital and networks have just been slower to distribute than talent has." For Moradi, expanding the geographic reach of venture capital is not just about discovering more founders; it’s about uncovering invaluable sources of insight and innovation that traditional, often insular, networks have historically overlooked.
Building Ecosystems: Capital as a Catalyst, Not a Panacea
When Cortado Ventures was established in 2020, Mike Moradi initially believed that the primary impediment to a burgeoning venture ecosystem in the Midcontinent was a scarcity of capital. The firm’s early successes demonstrated that promising companies could indeed be identified and funded within the region. However, as Cortado expanded its operations and deepened its engagement, Moradi’s understanding of founders’ needs evolved beyond mere financial investment. He recognized that capital, while essential, was far from sufficient. "Five years ago, I would have said the limiting reagent in a young ecosystem was capital. Capital turned out to be necessary, and also nowhere close to sufficient," Moradi reflected, highlighting a critical shift in perspective.
Founders require a multifaceted support system that extends far beyond a check. This includes experienced operators who can help them circumvent common pitfalls, early-adopter customers willing to pilot unproven technologies, patient investors prepared to bridge funding gaps between milestones, and a vibrant community conducive to the formation of vital relationships. Moradi emphasizes, "Money can accelerate a company. It cannot stand in for experience."
This realization profoundly influenced Cortado’s role in the broader Midcontinent ecosystem. Rather than hoarding relationships for its own portfolio, the firm actively works to interconnect founders, funders, universities, corporations, policymakers, and technical experts. A prime example of this commitment is Cortado’s annual Midcontinent Venture Capital Summit, which convenes investors, limited partners, founders, and ecosystem leaders from across the country, fostering collaboration and knowledge exchange. The firm also collaborates closely with regional entrepreneurship organizations and The Verge, an Oklahoma City-based incubator and accelerator that provides critical company-building resources, programming, and crucial capital connections. Each interaction within this expanding network—be it a casual conversation or a formal introduction—can prove instrumental in helping a founder secure a customer, advisor, employee, collaborator, or investor. Collectively, these relationships form the foundational infrastructure necessary for more companies to successfully launch, grow, and scale within the region. For Moradi, this is where venture capital’s true impact begins to transcend individual investments, cultivating a stronger ecosystem that provides more entrepreneurs with a viable path to company formation and greater opportunities for capital, talent, and innovation to converge.
The Art of Disciplined Investing: Conviction Without False Certainty
Investing in early-stage companies inherently involves navigating a landscape of incomplete information. Moradi candidly acknowledges this reality: "Incomplete data is my job description." Rather than striving for an impossible elimination of uncertainty, his approach involves meticulously separating assumptions that can be immediately tested from those that will only resolve over time. He rigorously identifies the critical conditions that must hold true for an investment to succeed, actively considers how these conditions could be disproven, and meticulously evaluates the cost associated with achieving the next significant milestone.
Moradi’s strongest convictions typically revolve around the founding team’s capabilities, the acute nature of the customer problem being addressed, and the company’s demonstrated rate of progress. He exercises greater caution when it comes to predicting the precise timing of an emerging market or the exact path a company might ultimately take to an exit. This disciplined approach becomes particularly vital when a financing round is moving at a rapid pace. The allure of a compelling founder and the competitive pressure of a fast-moving process can create significant pressure to make a decision before central investment assumptions have been thoroughly vetted. "A hard deadline is exactly when people stop asking uncomfortable questions," Moradi cautions, highlighting the danger of rushed decisions.
To counteract this, Cortado is willing to deliberately slow down the process, often engaging independent scientific or technical experts for a deeper evaluation. This additional diligence can either solidify the firm’s conviction or, critically, reveal reasons to step away from a potential investment. Many of Cortado’s most robust founder relationships have actually begun with this level of scrutiny, as it sharpens strategic thinking and identifies potential risks while there is still ample time to address them. However, slowing the decision-making process does not equate to slowing the responsiveness once a decision is made.
Moradi applies the same rigorous discipline to valuation. He believes that "A sensible entry price is a form of protection for the founder, employees, and investors alike." An overly aggressive valuation, while initially appearing as a victory, can have detrimental long-term consequences if the company’s actual progress fails to meet the inflated expectations attached to that number. This can negatively impact founder ownership, dilute employee equity, constrain future fundraising options, and hinder the company’s ability to adapt to unforeseen challenges. Conversely, excessively low valuations can stifle growth and morale. The key, Moradi emphasizes, is balance. "The right number buys you options for years. In boom times, people forget that financial crises happen," he notes, underscoring the importance of long-term strategic thinking over short-term perceived gains. For Cortado, this discipline is not a reflection of a lack of belief in a founder’s ambition; rather, it is a calculated strategy to provide ambitious companies with the necessary flexibility and time to ultimately succeed.
Beyond the Check: Active, Specific, and Timely Support
The Cortado Ventures team distinguishes itself through its deep operational experience, having collectively built, scaled, and successfully exited companies across many of the industries in which the firm now invests. This practical, first-hand knowledge profoundly shapes how the firm supports its founders, particularly when unforeseen challenges arise or difficult strategic decisions loom. Moradi encapsulates the essence of meaningful support in two words: "Speed and specificity."
He elaborates, "Answer in hours rather than days and show up with work already done instead of advice. Better yet, pick up the phone." This proactive, hands-on approach might involve rebuilding a complex financial model, facilitating a crucial customer introduction, assisting in the recruitment of a senior executive, or taking ownership of a sensitive aspect of a board conversation. It also encompasses the difficult but necessary task of delivering candid feedback when a company’s runway is shrinking or its strategic direction requires a fundamental shift. Moradi vividly recalls being the founder in those challenging meetings. "What helped was someone who lowered the temperature, told the truth to me and the board, and followed up after the meeting," he states, emphasizing empathy and follow-through.
As Cortado Ventures and the surrounding Midcontinent ecosystem have matured, the firm’s founder support mechanisms have become increasingly sophisticated. Portfolio companies now have access to a rich network of operating executives, industry specialists, expert advisors, prospective customers, experienced coaches, co-investors, and a peer group of other founders. The evolving needs of founders in the region also reflect this growth. While initially capital and the ability to attract co-investors were paramount, today founders also increasingly seek customer access, senior talent acquisition, specialized technical expertise, and reliable, honest guidance. Crucially, the firm’s role is never to usurp control from the entrepreneur. Sometimes, the most valuable contribution an investor can make is knowing precisely when not to intervene. "Other times," Moradi concludes, "being helpful means staying out of the way."
Building a Lasting Legacy: Beyond a Single Fund
Moradi articulates a profound belief that a venture firm’s responsibilities extend beyond the immediate performance of its own portfolio. "We must build things that outlast a single fund," he asserts, emphasizing a commitment to long-term ecosystem development. For Cortado Ventures, this vision translates into actively strengthening the intricate connections between founders, funders, universities, corporations, and policymakers throughout the Midcontinent. It also involves a deliberate effort to foster the formation and growth of more investment firms within the region, rather than viewing them as competitors.
"This is not a zero-sum game," Moradi declares. "We want to enable a dozen other firms in our geography, and bring in outside funds for later rounds. We need to create scalable structures where everyone can win." A larger, more interconnected investment community provides founders with a wider array of potential capital sources and expertise. It simultaneously creates more opportunities for investors to collaborate and participate in promising companies, ultimately establishing a more durable pathway between regional innovation and national capital markets.
This commitment to ecosystem building, however, does not diminish the firm’s primary fiduciary responsibility to its limited partners. Moradi’s experience as a trustee and audit committee member for a state retirement system has deeply reinforced the importance of directness regarding investment risk, duration, and potential losses. "Ecosystem building matters, and it does not excuse any of us from being disciplined fiduciaries first," he affirms, striking a crucial balance between community development and financial stewardship.
Moradi also recognizes the National Venture Capital Association (NVCA) as a vital component of the connective infrastructure supporting firms and founders nationwide. He views policy advocacy as a critical, tangible effort. Issues such as capital formation, research commercialization, immigration policies affecting talent acquisition, government procurement processes, tax treatment of investments, and securities regulations are not abstract; they directly influence an emerging manager’s ability to raise a fund, a startup’s capacity to attract talent, and a new technology’s access to the customers and institutions that need it. "NVCA helps each of us make policy concrete and stay on top of the issues that matter in D.C. and beyond," Moradi notes. Cortado’s active participation in the NVCA also provides a crucial platform to infuse a Midcontinent perspective into national dialogues concerning innovation, capital formation, and the future trajectory of the venture industry.
Expanding the Map of American Innovation: A Broader Vision
Moradi hopes that the narrative of Cortado Ventures will contribute to a more nuanced and expansive understanding of American venture capital. While the industry’s largest, most visible firms often garner the lion’s share of attention, he emphasizes that "Most of VC looks nothing like the caricature. The bulk of the industry is small firms writing early checks into some niche, be it industrial, geographic, demographic, or otherwise. And a VC firm is also a startup until fund 3 or 4." This perspective underscores the critical, often unsung, role played by these specialized investors. They are instrumental in identifying founders before their markets become obvious, bridging specialized knowledge with capital, and guiding companies through the challenging chasm between a promising idea and a sustainable business. "The hardest work happens after the money moves," Moradi states, highlighting the intensive post-investment support.
The current technological landscape, marked by advancements in artificial intelligence, automation, advanced manufacturing, energy innovation, biotechnology, and space technology, is dramatically lowering the cost of pursuing ambitious ideas. This paradigm shift empowers small teams to tackle opportunities that once demanded the vast resources of large corporations or national programs. Many of these pioneering teams, Moradi predicts, will emerge in locations intimately connected to the very problems they are striving to solve.
This is the profound, broader impact of democratizing venture capital across America. When investors intentionally look beyond familiar networks and engage with founders in regions where critical industries operate, they catalyze a virtuous cycle: more innovative ideas transform into viable companies, more groundbreaking technologies reach the market, and more communities actively participate in, and benefit from, the nation’s innovation economy. For Mike Moradi, the enduring optimism lies with the founders themselves—those individuals audacious enough to attempt what others deem impossible. "Never forget that we’re here for them. When we do this right, everyone, including humanity, wins," he concludes, encapsulating Cortado Ventures’ mission to foster not just financial returns, but societal progress through strategic innovation.
