Oklahoma City, OK – The venture capital landscape, traditionally dominated by coastal hubs, is undergoing a significant transformation, driven by firms like Cortado Ventures and the vision of its co-founder and general partner, Mike Moradi. As featured in the NVCA’s "Meet a VC" series, Cortado Ventures, an Oklahoma City-based firm, is strategically investing in seed-stage frontier technology companies across the U.S. Midcontinent, championing a thesis grounded in the profound belief that the most impactful founders are often those with deep, firsthand experience within the critical industries they seek to revolutionize. This approach is not merely about identifying promising startups; it’s about intentionally expanding the geographical footprint of American innovation, fostering a new era of growth in historically underserved regions.
A Founder’s Journey: Lessons Forged in Fire
Mike Moradi’s path to venture capital is a testament to resilience, learning from both triumph and tribulation, a journey that profoundly shapes Cortado’s operational philosophy. A six-time founder, Moradi navigated the complex terrains of biopharmaceuticals, nanotechnology, and other technically intricate sectors, experiencing the entrepreneurial roller coaster firsthand. His unconventional trajectory began when he made the pivotal decision to leave dental school to launch his first company. That initial venture, like many audacious undertakings, ultimately failed. However, this setback did not diminish his ambition; instead, it instilled a crucial lesson in 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, emphasizing the unwavering commitment required when others question the path ahead.
This early failure proved foundational. His subsequent company experienced rapid growth, culminating in a successful acquisition by a Fortune 100 enterprise. Later, a San Francisco Bay Area venture also achieved an acquisition, though not without its own near-catastrophic challenges following an $18 million Series B financing round. This experience offered a different, equally vital insight: capital, while essential, can be a double-edged sword. It can accelerate a company’s trajectory, but speed without strategic direction can be detrimental. Moradi observed, "A high valuation and a full bank account will happily let you scale the wrong thing." This underscored the importance of pairing entrepreneurial optimism with rigorous evidence, disciplined execution, and a clear understanding of what a company truly needs to prove next before scaling. Today, this philosophy guides his mission to infuse the entrepreneurial "spark" of Silicon Valley into the Midcontinent, meticulously considering the sequence and timing of capital deployment to help founders test assumptions, mitigate risk, and achieve meaningful milestones without prematurely over-expanding.
Cortado’s Genesis and the Midcontinent Advantage
In 2020, Moradi co-founded Cortado Ventures alongside a cadre of seasoned founders, CEOs, and operators. Their collective vision was to construct the type of firm they wished had existed during their own entrepreneurial endeavors: one that genuinely understood the multifaceted decisions founders face and could contribute far beyond the initial capital injection. This "built by founders, for founders" ethos became the bedrock of Cortado’s operational model.
The strategic choice of the Midcontinent as Cortado’s primary investment geography is not accidental; it is a calculated advantage. This expansive region is a crucible of critical industries facing immense pressure to innovate and evolve. Sectors such as energy (including the energy transition), aerospace and defense, healthcare, advanced manufacturing, mobility, and logistics are deeply embedded within complex physical environments, established supply chains, and demanding customer ecosystems. Transforming these requires more than elegant software; it demands a profound, nuanced understanding of how these industries fundamentally operate.
Cortado actively seeks out experienced technical founders who possess this innate understanding. These are individuals who may have spent years immersed within a hospital, a factory floor, a cutting-edge laboratory, an energy company, a complex aerospace program, or a vast logistics network before identifying a unique opportunity to solve a persistent problem through novel technological application. Their deep-seated experience grants them invaluable credibility with potential customers, critical insight into implementation challenges, and a reservoir of specialized knowledge that would be exceedingly difficult to cultivate from an external perspective.
Furthermore, the geography itself serves as a competitive edge. The Midcontinent offers unparalleled proximity to these critical industries and their potential customers, fostering direct feedback loops and partnership opportunities. The region also boasts a technically skilled workforce, often graduating from robust research institutions and universities. Complementary public funding initiatives and significantly lower company-building costs, including real estate, talent acquisition, and operational overhead, further enhance the region’s appeal. This economic reality allows startups to extend their runway and achieve more with less capital, a vital consideration for seed-stage companies.
Supporting data highlights the growing potential of these regions. While historically receiving a disproportionately small share of national venture capital, the Midcontinent has seen increasing investor interest. According to PitchBook-NVCA Venture Monitor reports, while California, New York, and Massachusetts still dominate, states within the Midcontinent, including Oklahoma, have experienced double-digit percentage increases in venture capital deployed over recent years, albeit from a smaller base. This trend signifies a recognition of untapped potential. Cortado’s portfolio reflects the diverse innovation stemming from this environment, with investments spanning space communications, industrial safety, critical infrastructure cybersecurity, advanced manufacturing, healthcare technology, renewable energy solutions, and next-generation mobility platforms.
Cortado’s strategy is not predicated on the notion that Midcontinent founders should receive investment merely because they have historically attracted less venture capital. Instead, it is firmly rooted in the conviction that direct proximity to "hard problems" — the complex, real-world challenges faced by foundational industries — inherently produces differentiated companies capable of generating robust returns. As Moradi succinctly states, "Talent is not concentrated anywhere in particular. Capital and networks have just been slower to distribute than talent has." This perspective underscores a broader impact: expanding the geographic reach of venture capital is not solely about discovering more founders; it’s about unlocking novel sources of insight and innovation that traditional, insular networks may have consistently overlooked.
Beyond Capital: Cultivating a Thriving Ecosystem
When Cortado Ventures first launched, Moradi initially believed that the primary constraint stifling a nascent venture ecosystem was a sheer shortage of capital. The firm’s early successes in identifying and funding promising companies in the region indeed validated the presence of investable opportunities. However, as Cortado matured and its understanding deepened, Moradi’s perspective on the multifaceted needs of founders broadened considerably. "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 reflected.
Founders require a holistic support system that extends far beyond financial backing. They need experienced operators who can provide invaluable guidance to help them preempt preventable mistakes. They need early adopter customers willing to take a chance on unproven, yet promising, technologies. They need a network of supportive investors prepared to sustain a company through the inevitable valleys between major milestones. Crucially, they need a vibrant community where vital relationships—mentorship, collaboration, peer support—can naturally form and flourish. As Moradi emphasized, "Money can accelerate a company. It cannot stand in for experience."
This critical realization profoundly shaped Cortado’s role within the broader Midcontinent ecosystem. The firm actively works to bridge connections among founders, funders, academic institutions, large corporations, policymakers, and technical experts, rather than exclusively reserving these invaluable relationships for its own portfolio companies. This inclusive approach is exemplified by initiatives such as Cortado’s annual Midcontinent Venture Capital Summit, which convenes investors, limited partners, founders, and ecosystem leaders from across the nation, fostering collaboration and dialogue. The firm also partners with regional entrepreneurship organizations and The Verge, an Oklahoma City-based incubator and accelerator that provides essential company-building resources, specialized programming, and crucial capital connections. Each of these interactions, whether a direct introduction or a broader networking event, can prove instrumental in helping a founder secure a customer, identify an advisor, recruit a key employee, find a collaborator, or attract additional investment. Collectively, these efforts construct the essential infrastructure that enables more companies to successfully launch, scale, and thrive within the region. For Moradi, this is where venture capital’s true impact transcends a single investment; a robust, interconnected ecosystem offers more entrepreneurs a viable pathway to company formation, simultaneously creating a greater abundance of opportunities for capital, talent, and innovation to converge.
Investment Discipline: Conviction Without False Certainty
Early-stage venture investing inherently operates in an environment characterized by imperfect information. Moradi candidly acknowledges this reality: "Incomplete data is my job description." Rather than futilely attempting to eliminate all uncertainty, his strategy 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 a venture’s success, proactively considers how these conditions might be disproven, and diligently evaluates the precise cost and effort required to reach the next meaningful milestone.
Moradi’s strongest convictions typically revolve around the founding team’s capabilities and vision, the genuine severity of the customer problem being addressed, and the company’s demonstrable rate of progress. He exercises greater caution when attempting to predict the exact timing of an emerging market or the precise path a company might ultimately take towards an exit. This disciplined approach becomes particularly vital when a financing round is moving at a rapid pace. A compelling founder and a competitive process can generate considerable pressure to make a swift decision before the central 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.
When circumstances necessitate it, Cortado is prepared to deliberately slow down the investment process, engaging independent scientific or technical experts to conduct additional, specialized diligence. This enhanced scrutiny may either fortify the firm’s conviction or, equally importantly, reveal a compelling reason to step away from an investment. Paradoxically, Cortado’s most enduring founder relationships have often originated from this initial phase of rigorous scrutiny, as it sharpens strategic thinking and identifies potential risks while there is still ample time to address them proactively. However, slowing the decision-making process does not equate to slowing the responsiveness; once a commitment is made, Cortado acts with speed and specificity.
Moradi applies the same unwavering discipline to company valuation. "A sensible entry price is a form of protection for the founder, employees, and investors alike," he asserts. An aggressively high valuation, while seemingly an immediate victory for founders, can carry significant long-term repercussions. If the company’s subsequent progress fails to meet the elevated expectations embedded in that valuation, the consequences can negatively impact founder ownership, dilute employee equity, constrain future fundraising options, and severely limit the company’s agility to adapt to evolving market conditions. This balanced perspective also acknowledges the reciprocal risk: "VCs can also strangle the life out of a company. Balance is key." Moradi emphasizes the foresight required, noting, "The right number buys you options for years. In boom times, people forget that financial crises happen." For Cortado, this discipline is not a reflection of a lack of belief in a founder’s ambition; rather, it is a strategic approach to grant an ambitious company the essential flexibility and crucial time it needs to achieve sustainable success.
Meaningful Support: Speed, Specificity, and Empathy
Cortado’s team possesses extensive operating experience, having built, scaled, and successfully exited companies across many of the very industries in which the firm now invests. This practical, hands-on background profoundly shapes how they support founders, particularly when unforeseen challenges emerge or difficult decisions must be made. Moradi distills the essence of meaningful support into two critical attributes: "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 commitment to actionable support can manifest in various ways: meticulously rebuilding a financial model, leveraging their network to make a critical customer introduction, actively recruiting a senior executive, or even taking responsibility for navigating a contentious aspect of a board conversation. It also encompasses the courage to deliver difficult truths when a company’s runway is shortening or its strategic direction urgently requires a pivot. Moradi, drawing from his own entrepreneurial past, vividly remembers 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."
As Cortado and the surrounding ecosystem have matured, the sophistication of the firm’s founder support has likewise evolved. Portfolio companies now have access to a rich tapestry of resources, including operating executives, industry specialists, expert advisors, prospective customers, experienced coaches, a broad network of co-investors, and a community of fellow founders. The needs of founders in the region have also diversified. While capital scarcity once made Cortado’s investment and its ability to attract additional investors particularly valuable, today’s founders increasingly seek customer access, senior talent, specialized technical expertise, and candid, honest guidance. Crucially, the firm’s role is not to usurp control from the entrepreneur. Sometimes, the most valuable contribution an investor can make is the judicious decision of knowing when not to intervene. As Moradi acknowledges, "Other times, being helpful means staying out of the way."
Building a Lasting Legacy: Beyond a Single Fund
Mike Moradi firmly believes that a venture firm’s responsibility extends far beyond the confines of its own portfolio. "We must build things that outlast a single fund," he declares, articulating a vision for enduring impact. For Cortado, this translates into a proactive commitment to strengthening the intricate connections among founders, funders, universities, corporations, and policymakers across the Midcontinent. It also entails actively fostering the formation and growth of other investment firms within the region.
"This is not a zero-sum game," Moradi asserts, advocating for a collaborative, expansive approach. "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 companies, ultimately establishing a more durable pathway between regional innovation and national capital markets.
This commitment to ecosystem building, however, does not diminish a firm’s primary responsibility to its limited partners. Moradi, drawing from his experience as a trustee and audit committee member for a state retirement system, emphasizes the paramount importance of direct 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 unequivocally.
Moradi also recognizes the NVCA (National Venture Capital Association) as an indispensable component of the connective infrastructure supporting 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 critical talent, and whether a groundbreaking new technology can effectively 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 notes. Participation in NVCA also provides Cortado with 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 Cortado’s story will help illuminate the true breadth and diversity of American venture capital. While the industry’s largest, most prominent firms often capture the lion’s share of public attention, the vast majority of venture activity is driven by smaller, specialized investors writing early checks into niche industries, specific technologies, unique 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 typical perception.
These smaller, specialized firms play an absolutely essential role in the innovation ecosystem. They are adept at identifying founders before their markets become overtly obvious, bridging specialized knowledge with necessary capital, and providing crucial guidance to companies navigating the arduous period between a promising initial idea and a sustainable, scalable business. "The hardest work happens after the money moves," Moradi observes, underscoring the hands-on, intensive nature of early-stage investing.
The advent of new technologies, particularly in areas like artificial intelligence, advanced automation, cutting-edge manufacturing processes, novel energy innovations, breakthroughs in biology, and sophisticated space technology, is dramatically reducing the cost and barriers to attempting ambitious ideas. Small, agile teams can now pursue opportunities that once demanded the vast resources of large corporations or national programs. Critically, many of these transformative teams are emerging in locations intimately connected to the complex problems they are diligently working to solve.
This decentralization of venture capital across America holds profound implications. When investors consciously look beyond familiar networks and actively seek out founders where critical industries operate, they facilitate the transformation of more ideas into viable companies, enable more technologies to reach the market, and empower more communities to actively participate in the nation’s innovation economy. For Moradi, the persistent optimism lies with the founders themselves – those audacious individuals attempting what others deem impossible. "Never forget that we’re here for them. When we do this right, everyone, including humanity, wins."
Cortado Ventures stands as a compelling example of how strategic, founder-centric investment in overlooked geographies can unlock immense potential, driving both economic growth and technological advancement. Its membership in the NVCA further solidifies its commitment to shaping a more inclusive and robust future for American innovation. To learn more about the firm and its impactful work, visit cortado.ventures.
