In a significant spotlight within the National Venture Capital Association’s (NVCA) "Meet a VC" series, Mike Moradi, co-founder and general partner of Oklahoma City-based Cortado Ventures, is shaping the narrative of American innovation by strategically investing in seed-stage frontier technology companies across the U.S. Midcontinent. Cortado Ventures operates on a foundational belief: the most impactful founders, those poised to revolutionize critical industries, are often individuals who have spent years immersed within those very sectors. By bridging their invaluable on-the-ground experience with essential capital, customer access, and a robust support network, Cortado is actively expanding the geographical footprint where groundbreaking American innovation can take root and flourish.
The firm’s thesis challenges conventional venture capital wisdom, asserting that proximity to complex, "hard problems" — those embedded in traditional industries like energy, aerospace, manufacturing, and healthcare — yields differentiated companies and superior returns. This approach is not merely about democratizing access to capital but strategically leveraging the unique insights and competitive advantages found outside traditional coastal tech hubs.
A Founder’s Journey Forges a VC’s Vision
Mike Moradi’s trajectory into venture capital is deeply informed by his own arduous yet ultimately successful entrepreneurial endeavors. A six-time founder, Moradi navigated the tumultuous waters of company building across technically intricate fields such as biopharmaceuticals and nanotechnology. His initial foray into entrepreneurship began unconventionally, pivoting from dental school to launch his first company. This venture, however, met with failure, delivering a profound lesson in resilience. Instead of diminishing his ambition, the experience instilled in him an unwavering commitment to persevere through setbacks and maintain conviction in the face of skepticism. As Moradi himself articulates, "The lesson was to keep pushing past every obstacle, to not be discouraged by hearing the word ‘no,’ and to stay the course.”
His subsequent ventures proved more fruitful. One company achieved rapid growth before being acquired by a Fortune 100 corporation, a testament to his evolving acumen. Later, a San Francisco Bay Area startup he co-founded also secured an acquisition, but not before confronting near-collapse following an $18 million Series B financing round. This near-miss provided a critical, albeit painful, insight: capital can accelerate a company’s trajectory, but speed is only advantageous when a business is fundamentally sound and scaling in the correct direction. "A high valuation and a full bank account will happily let you scale the wrong thing," Moradi cautions, highlighting the perils of unchecked growth without validated market fit.
These firsthand experiences cemented Moradi’s mission: to infuse the entrepreneurial dynamism often associated with Silicon Valley into the Midcontinent region. He dedicates considerable thought not just to a company’s technological promise, but equally to the strategic sequencing and timing of capital deployment. For Moradi, financing should be a tool for founders to rigorously test assumptions, mitigate risks, and achieve tangible milestones, rather than enabling premature or unproven expansion. This philosophy marries entrepreneurial optimism with data-driven evidence, disciplined execution, and a clear roadmap of what must be validated next. In 2020, Moradi, alongside a cadre of seasoned founders, CEOs, and operators, co-launched Cortado Ventures. Their collective aim was to establish the very kind of firm they wished had existed during their own entrepreneurial journeys: one that intimately understood the founder’s perspective and could offer substantial value beyond merely an initial investment.
The Strategic Advantage of the Midcontinent
Cortado Ventures’ investment thesis is inextricably linked to the unique dynamics of the U.S. Midcontinent. This expansive region is home to several foundational American industries — including energy, aerospace and defense, healthcare, manufacturing, mobility, and logistics — all of which are currently under immense pressure to innovate and evolve. These sectors operate within inherently complex physical environments, rely on deeply established supply chains, and serve demanding customer bases. True transformation within these industries, therefore, requires more than just a compelling software application; it demands a profound, nuanced understanding of their operational intricacies.
Cortado actively seeks out experienced technical founders who possess this crucial, embedded knowledge. These are often individuals who have spent years within hospitals, factories, laboratories, energy companies, aerospace programs, or logistics networks. Their direct experience not only provides them with immediate credibility among potential customers but also furnishes invaluable insights into implementation challenges and market dynamics that would be exceedingly difficult for outsiders to cultivate.
Furthermore, the Midcontinent itself presents a compelling competitive advantage. The region offers unparalleled proximity to these critical industries and their potential customers, a robust and technically skilled workforce often cultivated by regional universities and vocational programs, strong research institutions, and complementary public funding initiatives. Importantly, company-building costs in the Midcontinent are significantly lower compared to coastal tech hubs, allowing startups to stretch capital further and achieve more with less. This cost efficiency, combined with access to talent and industry-specific expertise, creates a fertile ground for innovation.
Cortado’s diverse portfolio vividly illustrates the breadth of innovation emerging from this environment. The firm supports companies applying cutting-edge technologies across a spectrum of fields, from space communications and industrial safety to critical infrastructure cybersecurity, advanced manufacturing, healthcare, energy, and mobility. The underlying strategy is not rooted in the notion that Midcontinent founders deserve investment simply because they have historically been underserved by venture capital. Rather, it is built on the firm conviction that direct engagement with and proximity to "hard problems" naturally leads to the creation of differentiated companies and, ultimately, strong financial 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 and Cortado, expanding the geographic reach of venture capital is thus a dual imperative: it is about identifying more exceptional founders and, critically, uncovering untapped sources of insight and innovation that traditional networks have historically overlooked.
Beyond Capital: Cultivating a Thriving Ecosystem
When Cortado Ventures first launched, Mike Moradi initially believed that the primary constraint stifling the growth of a nascent venture ecosystem was a scarcity of capital. The firm’s early successes in identifying and funding promising companies in the region indeed helped to demonstrate the viability of this premise. However, as Cortado expanded and matured, Moradi’s understanding of founders’ needs evolved dramatically, becoming far more comprehensive. "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," he reflects.
Founders, particularly in developing ecosystems, require a multifaceted support system. This includes experienced operators who can guide them away from preventable mistakes, early-adopter customers willing to embrace unproven technologies, patient investors committed to supporting a company through various milestones, and a vibrant community where crucial relationships can organically form. Moradi emphasizes, "Money can accelerate a company. It cannot stand in for experience."
This profound realization has significantly shaped Cortado’s broader role within the Midcontinent ecosystem. Rather than exclusively reserving its network and resources for its own portfolio companies, Cortado actively works to connect founders with funders, universities, corporations, policymakers, and technical experts across the region. A cornerstone of these efforts is its annual Midcontinent Venture Capital Summit, an event that convenes investors, limited partners, founders, and ecosystem leaders from across the nation, fostering collaboration and knowledge exchange. Cortado also partners extensively with regional entrepreneurship organizations and The Verge, an Oklahoma City-based incubator and accelerator that provides vital company-building resources, programming, and crucial capital connections. Each of these interactions, whether a formal summit or an informal networking event, holds the potential for a founder to discover a new customer, adviser, employee, collaborator, or investor. Collectively, these relationships gradually build the essential infrastructure that empowers more companies to successfully launch and scale. For Moradi, this is where venture capital’s true impact extends far beyond a singular investment; a robust, interconnected ecosystem provides more entrepreneurs with a viable pathway to company formation, simultaneously creating more avenues for capital, talent, and innovation to find each other.
Discipline in Uncertainty: Cortado’s Investment Philosophy
Investing in early-stage ventures inherently involves navigating a landscape characterized by incomplete information. Moradi candidly acknowledges this reality: "Incomplete data is my job description." Rather than attempting to eliminate uncertainty entirely, Cortado’s approach involves a rigorous process of separating assumptions that can be immediately tested from those that will only be resolved over time. The firm meticulously identifies the critical conditions that must hold true for a venture to succeed, then actively considers how those conditions could be disproven, and meticulously evaluates the cost associated with achieving the next meaningful milestone.
Cortado’s strongest convictions typically center on the founding team’s capabilities, the authenticity and scale of the customer problem being addressed, and the company’s demonstrated rate of progress. Conversely, Moradi 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 especially crucial when a financing round is moving at an accelerated pace. The allure of a charismatic founder combined with a competitive fundraising process can create immense pressure to make a swift decision before core investment assumptions have been thoroughly vetted. "A hard deadline is exactly when people stop asking uncomfortable questions," Moradi warns. In such instances, Cortado is prepared to deliberately slow down the process, bringing in independent scientific or technical experts for deeper evaluation. This additional diligence either strengthens the firm’s conviction or, critically, reveals compelling reasons to step away. Many of Cortado’s most robust founder relationships have paradoxically begun with this intense scrutiny, as it sharpens strategic thinking and proactively identifies risks while there is still ample time to address them. However, slowing the decision-making process does not equate to delaying support once a commitment is made.
Moradi applies a similar discipline to company valuation. "A sensible entry price is a form of protection for the founder, employees, and investors alike," he asserts. While an aggressive valuation might feel like an immediate triumph, if the company’s subsequent progress fails to meet the elevated expectations tied to that figure, the consequences can be severe. These can impact founder ownership, dilute employee equity, constrain future fundraising options, and ultimately hinder the company’s crucial ability to adapt and pivot. This dynamic, Moradi notes, is a double-edged sword, as venture capitalists can also inadvertently stifle a company’s potential through overly harsh terms. Balance is paramount. "The right number buys you options for years. In boom times, people forget that financial crises happen," Moradi reminds, underscoring the importance of long-term perspective. For Cortado, this discipline is not a reflection of a lack of belief in a founder’s ambition; rather, it is a strategic mechanism to afford an ambitious company the vital flexibility and time required to succeed amidst unpredictable market conditions.
Actionable Support: Showing Up With Work Already Done
The Cortado Ventures team comprises individuals who have built, scaled, and successfully exited companies across many of the very industries in which the firm now invests. This extensive operating experience profoundly shapes how Cortado supports its founders, particularly when strategic plans inevitably shift or difficult decisions emerge. Moradi encapsulates the essence of meaningful support in two concise words: "Speed and specificity."
"Answer in hours rather than days and show up with work already done instead of advice. Better yet, pick up the phone," he advises. This commitment translates into tangible actions, such as rebuilding complex financial models, facilitating critical customer introductions, actively recruiting senior executives, or taking ownership of challenging aspects of a board conversation. It also means having the courage to articulate uncomfortable truths when a company’s runway is shrinking or its fundamental strategy demands a drastic change. Moradi vividly recalls being the founder in those tense meetings. "What helped was someone who lowered the temperature, told the truth to me and the board, and followed up after the meeting."
Cortado’s founder support system has evolved significantly in sophistication as both the firm and the surrounding ecosystem have matured. Portfolio companies now have access to a rich network comprising operating executives, industry specialists, expert advisers, prospective customers, coaches, investors, and other founders within the firm’s expansive reach. The needs of founders themselves have also evolved. In the early days, when capital was a scarce commodity in the region, Cortado’s investment and its ability to attract additional investors were uniquely valuable. Today, founders increasingly seek customer access, senior talent acquisition support, specialized technical expertise, and candid, honest guidance from seasoned practitioners. The firm’s role, crucially, is not to wrest control from the entrepreneur. Sometimes, the most valuable contribution an investor can make is discerning precisely when not to intervene. "Other times," Moradi concludes, "being helpful means staying out of the way."
Building What Outlasts a Fund: A Legacy Beyond Returns
Mike Moradi firmly believes that a venture firm’s responsibility extends far beyond the confines of its own portfolio companies and the lifespan of a single fund. "We must build things that outlast a single fund," he declares. For Cortado, this translates into a dedicated commitment to strengthening the intricate connections among founders, funders, universities, corporations, and policymakers across the Midcontinent. It also means actively fostering the formation and growth of more investment firms within the region itself.
"This is not a zero-sum game," Moradi asserts. "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 offers founders a greater diversity of potential capital sources and expertise. It simultaneously creates more opportunities for investors to collaborate and participate in promising ventures. Over time, this collective effort can establish a more durable and efficient pathway between regional innovation and national capital markets.
However, Moradi is quick to emphasize that ecosystem building does not supersede a firm’s fundamental fiduciary responsibility to its limited partners. Having served as a trustee and audit committee member for a state retirement system, Moradi deeply understands the paramount importance of being direct and transparent about investment risk, duration, and potential losses. "Ecosystem building matters, and it does not excuse any of us from being disciplined fiduciaries first."
Moradi also recognizes the NVCA as a crucial component of the connective infrastructure that supports venture firms and founders nationwide. Policy issues such as capital formation, research commercialization, immigration, government procurement, tax treatment, and securities regulations are not abstract concepts; they directly influence whether an emerging manager can successfully raise a fund, whether a startup can attract essential talent, and whether a new technology can reach the customers and institutions that desperately 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 states. Cortado’s active participation in NVCA also provides a vital platform to inject a Midcontinent perspective into national dialogues concerning innovation, capital formation, and the future trajectory of the venture industry.
Expanding the Map of American Innovation
Mike Moradi hopes that Cortado Ventures’ narrative can contribute to a more comprehensive understanding of the breadth and diversity of American venture capital. While the industry’s largest, most visible firms often garner the lion’s share of attention, the vast majority of venture capital activity is conducted by smaller, specialized investors writing early checks into niche industries, specific technologies, underserved communities, and distinct regions. "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," Moradi explains, demystifying the industry.
These smaller, specialized firms play an indispensable role in identifying founders before their markets become obvious, connecting specialized knowledge with crucial capital, and guiding companies through the challenging period between a promising idea and a sustainable business. "The hardest work happens after the money moves," Moradi observes. This work is becoming even more consequential with the advent of transformative technologies such as artificial intelligence, automation, advanced manufacturing, energy innovation, biotechnology, and space technology, which are dramatically reducing the cost and complexity of pursuing ambitious ideas. Small teams can now tackle opportunities that once required the immense resources of large corporations or national programs. Many of these pioneering teams, Moradi predicts, will emerge in locations directly connected to the very problems they are striving to solve.
This decentralization of venture capital represents a broader, more impactful expansion of American innovation. When investors consciously look beyond familiar networks and actively seek out founders where critical industries operate, they not only help more ideas materialize into companies but also enable more technologies to reach the market and empower more communities to participate meaningfully in the nation’s innovation economy. For Mike Moradi, the founders who dare to attempt what others deem impossible remain the greatest source of optimism. "Never forget that we’re here for them. When we do this right, everyone, including humanity, wins." Cortado Ventures’ inclusion as part of the NVCA membership underscores its growing influence and the critical role it plays in diversifying and strengthening the national venture capital landscape. To learn more about the firm, visit cortado.ventures.
