In a significant spotlight on the evolving landscape of American venture capital, Mike Moradi, co-founder and general partner of Cortado Ventures, has emerged as a leading figure championing the U.S. Midcontinent as a fertile ground for frontier technology innovation. Based in Oklahoma City, Cortado Ventures is redefining where and how American innovation takes root, driven by a deeply founder-centric approach and a strategic focus on industries undergoing critical transformation. This profile, part of the NVCA’s "Meet a VC" series, delves into the philosophy, journey, and impact of a firm committed to expanding the geographical reach of venture capital and fostering robust regional ecosystems.
A Founder’s Perspective: Building from Experience
Mike Moradi’s journey into venture capital is atypical, forged through the crucible of his own entrepreneurial endeavors. A six-time founder, Moradi navigated the complex and often brutal world of company building across diverse, technically intricate sectors, including biopharmaceuticals and nanotechnology. His entrepreneurial path began with a bold decision to leave dental school to pursue his first startup—an endeavor that ultimately failed. This initial setback, rather than deterring him, instilled a profound resilience and an unwavering commitment to his vision. "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 required to overcome early adversities.
This early experience, while painful, laid the groundwork for future successes. His subsequent company achieved rapid growth and was acquired by a Fortune 100 enterprise, validating his entrepreneurial spirit. However, not all ventures followed a smooth trajectory. A later San Francisco Bay Area venture, despite securing an $18 million Series B financing, teetered on the brink of collapse before ultimately being acquired. This near-failure imparted another crucial lesson: capital, while essential, can also accelerate misdirection. "A high valuation and a full bank account will happily let you scale the wrong thing," Moradi notes, underscoring the critical importance of strategic deployment of funds and a clear understanding of market readiness. This insight led him to develop a disciplined approach that pairs entrepreneurial optimism with rigorous evidence, ensuring that financing supports testing assumptions, mitigating risk, and achieving tangible milestones, rather than simply fueling premature growth. His philosophy emphasizes that a company should not outgrow its proven capabilities.
In 2020, Moradi, alongside a team of seasoned founders, CEOs, and operators, co-founded Cortado Ventures. Their collective aim was to establish the kind of firm they wished had existed during their own entrepreneurial careers: one that intimately understood the challenges founders faced and could offer comprehensive support extending far beyond an initial capital injection. This "built by founders, for founders" ethos permeates Cortado’s operations, positioning the firm as a true partner in company building.
The Midcontinent as a Strategic Advantage: Unlocking Untapped Potential
Cortado Ventures’ investment thesis is strategically anchored in the U.S. Midcontinent, a region often overlooked by traditional venture capital but rich in critical industries ripe for technological disruption. The firm identifies this geographic focus not as a concession, but as a competitive advantage. The Midcontinent is home to foundational sectors such as energy, aerospace and defense, healthcare, manufacturing, mobility, and logistics—industries characterized by complex physical environments, deeply entrenched supply chains, and demanding customer relationships. Transforming these sectors requires more than just innovative software; it demands an intricate, firsthand understanding of their operational nuances.
This understanding forms the bedrock of Cortado’s investment strategy. The firm actively seeks out experienced technical founders who possess years of immersion within these industries—individuals who have worked inside hospitals, factories, laboratories, energy companies, or logistics networks before identifying a persistent problem and conceiving a novel solution. Such founders bring invaluable credibility with customers, practical insights into implementation hurdles, and a depth of knowledge that is virtually impossible to acquire from an external vantage point. This approach contrasts sharply with the often software-first, consumer-tech-heavy focus of coastal VC firms, highlighting a unique value proposition.
Supporting data underscores the Midcontinent’s historical underrepresentation in venture capital funding. While regions like California, New York, and Massachusetts have traditionally commanded the lion’s share of national VC investment, states in the Midcontinent have lagged significantly. For instance, in 2023, while California alone captured over 40% of all U.S. venture capital, states like Oklahoma, Kansas, and Arkansas collectively received a fraction of that. However, this trend is gradually shifting, with growing recognition of the latent potential in these regions. The presence of robust research institutions, a skilled workforce, complementary public funding initiatives, and significantly lower company-building costs further enhances the Midcontinent’s appeal. These factors enable startups to stretch their capital further, achieve milestones more efficiently, and build sustainable businesses outside the overheated markets of traditional tech hubs.
Cortado’s portfolio vividly illustrates the breadth of innovation emerging from this environment. Their investments span diverse applications of new technologies, including space communications, industrial safety solutions, critical infrastructure cybersecurity, advanced manufacturing, healthcare technology, energy innovation, and next-generation mobility. The firm’s strategy is not predicated on the idea of investing in Midcontinent founders simply because they have historically received less venture capital. Instead, it is driven by a strong conviction that proximity to "hard problems" in critical industries naturally cultivates differentiated companies and, consequently, robust financial returns. Moradi succinctly captures this belief: "Talent is not concentrated anywhere in particular. Capital and networks have just been slower to distribute than talent has." For Cortado, expanding the geographic footprint of venture capital is not merely about democratizing access; it is about uncovering novel sources of insight and innovation that traditional networks have historically overlooked.
Capital Is Necessary, But Not Sufficient: Building a Thriving Ecosystem
When Cortado Ventures was established, Mike Moradi initially believed that the primary impediment to a nascent venture ecosystem was a scarcity of capital. The firm’s early successes in identifying and funding promising regional companies validated the demand side of this equation. However, as Cortado matured and its understanding of the entrepreneurial landscape deepened, Moradi’s perspective on the needs of founders evolved significantly. "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, highlighting a crucial shift in his understanding.
Founders, particularly in emerging ecosystems, require a multifaceted support system that extends far beyond monetary investment. This includes access to experienced operators who can provide guidance and help avoid common pitfalls, customers willing to adopt unproven technologies, supportive investors committed to bridging funding gaps between milestones, and a vibrant community where crucial relationships can be forged. "Money can accelerate a company," Moradi states, "It cannot stand in for experience."
This realization profoundly shaped Cortado’s broader role within the Midcontinent ecosystem. Rather than hoarding relationships exclusively for its portfolio companies, the firm actively works to connect founders with funders, universities, corporations, policymakers, and technical experts across the region. A key initiative in this effort is Cortado’s annual Midcontinent Venture Capital Summit, which convenes investors, limited partners, founders, and ecosystem leaders from across the nation, fostering collaboration and knowledge exchange. Additionally, Cortado partners with regional entrepreneurship organizations and The Verge, an Oklahoma City-based incubator and accelerator that provides vital company-building resources, programming, and capital connections. Each of these interactions serves as a potential conduit for a founder to secure a customer, find an advisor, recruit an employee, identify a collaborator, or attract additional investment. Collectively, these relationships construct the essential infrastructure that enables more companies to successfully launch and scale. For Moradi, this ecosystem-building approach represents a venture capital impact that transcends individual investments, creating a stronger regional foundation where more entrepreneurs can thrive, and capital, talent, and innovation can converge more effectively.
Conviction Without False Certainty: A Disciplined Investment Approach
Early-stage venture investing inherently operates in an environment of imperfect information. Moradi candidly acknowledges this reality, stating, "Incomplete data is my job description." Rather than striving for an impossible elimination of uncertainty, his strategy involves a disciplined process of categorizing assumptions: those that can be immediately tested versus those that will only resolve over time. He meticulously identifies the conditions that must hold true, critically evaluates how they might be disproven, and assesses the cost of achieving the next meaningful milestone.
Moradi’s strongest convictions typically center on the quality and resilience of the founding team, the clarity and urgency of the customer problem being addressed, and the company’s demonstrable 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 take to an eventual exit. This discipline becomes particularly vital when a financing round is moving at an accelerated pace, as the allure of a compelling founder and a competitive process can generate pressure to finalize a decision before fundamental investment assumptions have been thoroughly vetted. "A hard deadline is exactly when people stop asking uncomfortable questions," Moradi warns, highlighting the risk of overlooking critical details under duress.
To counteract this, Cortado is prepared to deliberately slow down the investment process when necessary, often engaging independent scientific or technical experts to conduct additional diligence. This rigorous evaluation process may either solidify the firm’s conviction or reveal reasons to withdraw. Intriguingly, many of Cortado’s strongest founder relationships have originated from this initial scrutiny, as the process sharpens strategic thinking and proactively identifies risks while there is still ample time to address them. Importantly, slowing down the decision-making process does not imply a slower response once a commitment is made.
Moradi applies the same disciplined approach to 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 align with the elevated expectations attached to that figure, the repercussions can be severe. These can include dilution of founder ownership, erosion of employee equity, constrained future fundraising options, and a diminished capacity for the company to adapt to unforeseen challenges. Conversely, excessively low valuations can also stifle a company’s potential. The key, Moradi stresses, is balance. "The right number buys you options for years. In boom times, people forget that financial crises happen," he cautions, drawing on a historical awareness of economic cycles. For Cortado, this discipline is not indicative of a lack of belief in a founder’s ambition; rather, it is a strategic mechanism to grant ambitious companies the crucial flexibility and time required for long-term success.
Showing Up With Work Already Done: Active Support for Founders
Cortado Ventures distinguishes itself through a deeply operational approach to founder support, rooted in the collective experience of its team, who have themselves built, scaled, and exited companies across many of the industries in which the firm invests. This practical background profoundly shapes how they assist founders when plans inevitably shift or difficult decisions loom. Moradi encapsulates their philosophy of meaningful support with two key tenets: "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 active engagement can manifest in various forms: meticulously rebuilding a financial model, leveraging their network to make critical customer introductions, actively recruiting senior executives, or taking ownership of challenging aspects of board discussions. It also involves the courage to deliver unvarnished truths when a company’s runway is shrinking or a fundamental shift in strategy is imperative. Moradi vividly recalls being the founder in such high-stakes meetings: "What helped was someone who lowered the temperature, told the truth to me and the board, and followed up after the meeting."
As Cortado and the surrounding ecosystem have matured, their founder support mechanisms have become increasingly sophisticated. Portfolio companies now have access to a rich network comprising operating executives, industry specialists, advisors, prospective customers, coaches, fellow investors, and other founders. The evolving needs of founders in the region also reflect this growth. While capital and the ability to attract additional investors were paramount when the ecosystem was nascent, today’s founders increasingly seek customer access, senior talent, specialized technical expertise, and candid, experienced guidance. It is crucial to note that the firm’s role is not to usurp control from the entrepreneur. Sometimes, the most valuable contribution an investor can make is understanding when to step back. "Other times," Moradi concludes, "being helpful means staying out of the way."
Building What Outlasts a Fund: A Vision for Enduring Impact
Moradi firmly believes that a venture firm’s responsibility extends beyond the confines of its own portfolio. "We must build things that outlast a single fund," he asserts, articulating a vision for enduring impact that transcends typical fund cycles. For Cortado, this translates into a concerted effort to strengthen connections among founders, funders, universities, corporations, and policymakers across the region. It also involves actively fostering the formation and growth of other investment firms within the Midcontinent. "This is not a zero-sum game," Moradi emphasizes. "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 multiple benefits: founders gain access to a broader array of potential capital sources and expertise, investors find more opportunities for collaboration and participation in promising ventures, and over time, a more resilient pathway emerges connecting regional innovation with national capital markets. This ecosystem-building imperative, however, does not diminish a firm’s primary fiduciary duty to its limited partners. Moradi’s experience as a trustee and audit committee member for a state retirement system has reinforced the critical importance of transparent communication regarding investment risk, duration, and potential losses. "Ecosystem building matters, and it does not excuse any of us from being disciplined fiduciaries first," he states with conviction.
Moradi also recognizes the pivotal role of the National Venture Capital Association (NVCA) as a crucial piece of the connective infrastructure supporting 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 an emerging manager’s ability to raise a fund, a startup’s capacity to attract talent, and a new technology’s journey to reach 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. Furthermore, Cortado’s participation in the NVCA 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
Moradi hopes that Cortado’s story will help broaden the public’s perception of American venture capital. While the industry’s largest, most visible firms often garner the most 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 emerging 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," he observes.
These specialized firms play an indispensable role in identifying founders before their markets become obvious, seamlessly connecting specialized knowledge with critical 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 emphasizes. This work is becoming even more consequential with the accelerating pace of technological advancements. Innovations in artificial intelligence, automation, advanced manufacturing, energy innovation, biotechnology, and space technology are dramatically lowering the cost barrier for pursuing ambitious ideas. Consequently, small, agile teams can now tackle opportunities that once demanded the colossal resources of large corporations or national programs. Many of these pioneering teams, Moradi predicts, will emerge in locations intimately connected to the complex problems they are endeavoring to solve.
This decentralization represents the broader impact of expanding venture capital across America. When investors consciously look beyond familiar networks and actively engage with founders in regions where critical industries operate, they facilitate the transformation of more ideas into viable companies, enable more technologies to reach the market, and empower a greater number of communities to participate meaningfully in the nation’s innovation economy. For Mike Moradi, the unwavering optimism for the future rests squarely on the shoulders of these founders—those who dare 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 the profound purpose behind Cortado Ventures’ mission.
Cortado Ventures stands as a testament to the power of regional venture capital, demonstrating how a disciplined, founder-centric approach, combined with a deep understanding of local industrial strengths, can unlock significant innovation and foster robust economic growth outside traditional tech hubs. As the NVCA continues to highlight firms like Cortado, it reinforces the narrative of a diverse, dynamic, and geographically expansive American venture capital landscape. To learn more about the firm, visit cortado.ventures.
